Euroclear Bank and the Korean Securities Depository (KSD), in partnership with the South Korean Ministry of Finance, have launched an omnibus account for Korean treasury bonds (KTBs) and monetary stabilisation bonds (MSBs). This development marks, according to Euroclear, the first time these bonds can be settled via the Euroclearable link, offering international investors post-trade access to the Korean market.
The Brussels-based international central securities depository (ICSD) highlights that this link will also enable KTBs and MSBs to be included on Euroclear’s triparty platform. This inclusion facilitates their integration into Euroclear’s Collateral Highway, a neutral infrastructure for collateral management, supporting repo and pledge activities.
Euroclear asserts that this new system provides foreign investors with a more secure and standardised method to access the local market. For local issuers, the change promises enhanced access to broader liquidity pools and a potential reduction in borrowing cost volatility.
South Korea’s Deputy Prime Minister and Minister of Economy and Finance, Choi Sang-mok, emphasises the government’s commitment to improving foreign investors’ access to the KTB markets. “This policy direction will be consistently maintained as we believe it is crucial for sustainable progress and continued development of the Korean economy,” he states, adding that the government is in active dialogue with global financial markets to enhance foreign investment proximity and accessibility.
