The Korea Securities Depository announced on the 30th that the custodial balance of foreign investors surpassed 6 trillion won, just one year after the launch of the integrated account system for Government Bonds by the international securities depository organization. The cumulative transaction amount, including offshore collateral transactions, also exceeded 170 trillion won.
The integrated account system for Government Bonds is a transaction support system established by the Korea Securities Depository in cooperation with Euroclear and Clearstream to facilitate custody and settlement of Korean Government Bonds for foreigners. The Korea Securities Depository explained that the decision in October of last year to include Korean Government Bonds in the World Government Bond Index (WGBI) has led to a significant increase in the usage of the integrated account system by foreigners.
On this day, the Korea Securities Depository also held an industry meeting attended by 25 practical heads from government bond investment institutions, including the Ministry of Economy and Finance and domestic and foreign banks. During the meeting, opinions were exchanged regarding improvements to tax, foreign exchange, and financial investment systems aimed at enhancing investment convenience for foreigners, as well as examples of domestic and foreign Government Bonds transactions and currency exchange.
Lee Soon-ho, president of the Korea Securities Depository, noted, 'We will continue to expand the foreign investment base through stable operation of the integrated account system for Government Bonds and support for system improvements,' adding, 'To lower the barriers to entry for new foreign investors, we will work to enhance the accessibility of investing in Korean Government Bonds by jointly lowering fees with Euroclear.'