KSD signs a MoU with Clearstream to reinstate an omnibus account structure for Korea Treasury Bonds and Monetary Stabilisation Bonds
On 1 December 2022, Clearstream signed a Memorandum of Understanding (MoU) with the Korea Securities Depository (KSD) in Luxembourg to cooperate on reestablishing a cross-border link that will allow international investors efficient post trade access to Korea Treasury Bonds (KTBs) and Monetary Stabilisation Bonds (MSBs). This initiative is in line with the proposed tax exemption, on interest income and capital gains for KTBs and MSBs, which is pending the National Assembly’s approval
(MarketFlash M22001). Once approved, the tax exemption is expected to be effective from 1 January 2023.
More efficient access for international investors
Clearstream is actively committed to resuming its omnibus account services in the Korean market, further encouraging foreign investment in KTBs and MSBs. With the omnibus account, foreign investors will also no longer be required to apply for an Investor Registration Certificate (IRC) or open segregated accounts with a local custodian in Korea.
Currently, Clearstream is the only ICSD to provide access to the Korean market via the existing IRC investment route, supporting all equity and debt securities listed on the Korea Exchange (KRX), Korea Securities Dealers Association Automated Quotation System (KOSDAQ) as well as KTBs and MSBs, via segregated account structures.
Philip Brown, Chief Executive Officer, Clearstream Banking S.A.
Myongho Rhee, Chairman & Chief Executive Officer, KSD