Korea Securities Depository (KSD) has built an integrated business system to support the "retirement-pension individual Government Bonds" program that takes effect next month.
The depository said on the 27th that it held an event in Yeouido, Seoul, to mark the launch of the retirement-pension individual Government Bonds program and the opening of the system. Government officials and executives and employees from eight retirement pension providers, including Mirae Asset Securities, Korea Investment & Securities Co., and Samsung Securities, attended the event.
The retirement-pension individual Government Bonds program allows individuals to invest directly in 10-year and 20-year individual Government Bonds through defined contribution (DC) retirement pensions or individual retirement pension (IRP) accounts. It will go into full operation with the first issuance next month.
After the program was finalized late last year, the depository built related systems to handle the entire process from Government Bonds issuance to principal and interest repayment and cancellation.
In particular, the depository will also handle the task of aggregating subscription details received through each retirement pension provider and allocating Government Bonds to individual customer accounts. Even if subscriptions come in through multiple providers, allocations will be made under the same standards to enhance fairness and transparency.
After the first issuance next month, the depository plans to continue stabilizing the system while also providing support and promotion to increase participating retirement pension providers.
Lee Yoon-su, president of the depository, said, "By connecting networks with several retirement pension providers, we have built infrastructure that allows the public to easily invest in individual Government Bonds through DC and IRP accounts," adding, "We will faithfully fulfill our role as a core capital market infrastructure institution that provides fair and transparent allocation results."
He added, "We will spare no effort to ensure that the retirement-pension individual Government Bonds settle in smoothly and take root in the public's asset portfolio."