The Korean financial market is on the brink of another significant leap forward. Starting June 27, 2024, the International Central Securities Depository (ICSD) will begin offering custody and settlement services for Korean government bonds and Monetary Stabilization Bonds. This move is expected to mark a milestone in the internationalization of the Korean bond market and attraction of foreign investment, potentially revolutionizing KOREA BOND TRADING.
🌟 Key Changes
- Launch of Omnibus Accounts by Euroclear and Clearstream
- Significant simplification of investment procedures for foreign investors in Korean government bonds
🚀 Expected Benefits
- Greatly improved foreign exchange transaction convenience for foreign investors in Korean government bonds
- Anticipated increase in new investments
- Dramatically improved accessibility and transaction convenience in the Korean government bond market
📊 Special Measures for KRW Transactions
- Direct Remittance Allowed: Possibility of direct remittance to ICSD-named accounts after currency exchange through Registered Foreign Institutions (RFI)
- KRW Settlement for Non-resident Transactions: Permission for KRW settlement in transactions such as bond trading and repurchase agreements (Repo)
- Temporary KRW Borrowing Permitted: Ability to borrow KRW directly within ICSD-named accounts
These measures are scheduled to be officially implemented from June 28, 2024. It is anticipated that the Korean government bond market will become more active and establish itself as an attractive investment destination for global investors, potentially leading to a significant increase in KOREA BOND TRADING volumes.
For more detailed information, please visit the Ministry of Economy and Finance website.