KSD Publishes English Guide on Foreign Investors' Use of Korean Government Bond Collateral

The Korea Securities Depository (KSD) has published an English guide detailing the procedures for foreign investors to hold and utilize Korean government bonds as collateral. This initiative responds to the demand for financial transactions involving foreign-held Korean government bonds following their inclusion in the World Government Bond Index (WGBI) in April of this year. The guide includes information on domestic regulations, the procedures for holding and utilizing government bonds, and key service offerings. It organizes practical procedures to enable foreign investors to use Korean government bonds not just as passive assets but also through various methods such as securities lending (SLB) and repurchase agreements (Repo). The government is promoting measures to enhance the utilization of foreign-held Korean won-denominated bonds and increase the use of government bonds as collateral in the region through its roadmap for the internationalization of the won. The publication of the guide is part of efforts to expand the holding of government bonds and streamline utilization procedures following their inclusion in the WGBI, aiming to support foreign investors in broadly utilizing Korean government bonds for financial transactions. The actual impact is expected to vary depending on the application of transaction procedures and the scale of market participant usage.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.