South Korean capital markets become Euroclearable

Brussels/Seoul, 28 June 2024 - Euroclear Bank, the Brussels based International Central Securities Depository (ICSD) and the Korean Securities Depository (KSD) working in close collaboration with the South Korean Ministry of Finance have successfully opened the market's first omnibus account for Korean Treasury Bonds (KTBs) and Monetary Stabilisation Bonds (MSBs), making Korean government debt Euroclearable.

For the first time, KTBs and MSBs will be able to be settled via the Euroclearable link allowing international investors efficient post trade access to the market. The link will also allow KTBs and MSBs to be eligible on Euroclear's triparty platform, enabling seamless integration onto Euroclear's Collateral Highway for repo and pledge activities. The Collateral Highway is the world's first neutral, open infrastructure for collateral management.

Countries achieving Euroclearability can potentially benefit in a number of ways, including foreign investors accessing the local market in a more secure and standardised way, local issuers have enhanced access to wider liquidity pools and can realise a potential reduction in the overall volatility of borrowing costs.

Choi Sang-mok, Deputy Prime Minister and the Minister of Economy and Finance said: "The Korean government has been committed to improving foreign investors' accessibility to the KTB markets as a top policy priority. This policy direction will be consistently maintained as we believe it is crucial for sustainable progress and continued development of the Korean economy. The government is actively engaged in dialogue with global financial markets, seeking opportunities to improve foreign investment proximity and accessibility."

Soonho Lee, Chairman and CEO of Korea Securities Depository, added: "Following extensive discussions with Euroclear, we have opened the system in a relatively short implementation period of 18 months. This has been achieved thanks to the cooperative efforts of Euroclear, KSD and the Ministry of Economy and Finance. We expect this system to open new horizons for global investors in Korean government bonds and we are committed to fully supporting the seamless internationalisation of the Korean government bond market."

Peter Sneyers, Chief Executive Officer, Euroclear Bank commented: "By working in true partnership with the Korean capital markets, we have together been able to achieve a milestone by making the market Euroclearable. As we continue to support the market's growth, we aim to provide a seamless, efficient, and secure infrastructure for international investors to access and utilise Korean government bonds. This partnership also creates new opportunities on our Collateral Highway. As a financial market Infrastructure, our mission continues to be to support clients and partner with markets to provide financial stability and broaden investment opportunities available on our platform."

About Euroclear

Euroclear group is the financial industry's trusted provider of post trade services. Guided by its purpose, Euroclear innovates to bring safety, efficiency and connections to financial markets for sustainable economic growth. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives and investment funds. As a proven, resilient capital market infrastructure, Euroclear is committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise. The Euroclear group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden, Euroclear UK & International.