Korea Securities Depository has signed a memorandum of understanding with Euroclear Bank to provide international investors with enhanced post-trade access to Korean treasury bills and currency stabilization bonds.
The collaboration will aim to “create appropriate local market conditions to support a Euroclearable cross-border link,” according to the MoU. Brussels-based Euroclear provides settlement and custody of domestic and cross-border securities such as bonds, stocks and derivatives, as well as investment funds.
The move comes after Korea’s finance ministry revealed plans to exempt foreign investors from interest income and capital gains taxes on their investments in government bonds, as part of efforts to stabilize local currency in a volatile foreign exchange market.
Korea is also keen to be included in FTSE Russell’s World Government Bond Index (WGBI), where it is now on the Watch List, to further attract foreign investment to its capital markets.
With the signing of the MoU, Euroclear and Korea Securities Depository (KSD) “will be able to reach a higher level of relationship and build a strong partnership,” said KSD Chairman and Managing Director of Myongho Rhee. .
Euroclear Bank CEO Peter Sneyers added: “The Korean capital markets have recently made great strides in encouraging foreign investment, including the implementation of the new tax revision bill for non-residents and foreign companies, which means a real commitment to opening up a cross-border market. link. As a financial market infrastructure, we will continue to support and work closely with the market on its journey to include Korean Treasuries in the [WGBI].”
Korea Securities Depository has signed a memorandum of understanding with Euroclear Bank to provide international investors with enhanced post-trade access to Korean treasury bills and currency stabilization bonds.
The collaboration will aim to “create appropriate local market conditions to support a Euroclearable cross-border link,” according to the MoU. Brussels-based Euroclear provides settlement and custody of domestic and cross-border securities such as bonds, stocks and derivatives, as well as investment funds.
The move comes after Korea’s finance ministry revealed plans to exempt foreign investors from interest income and capital gains taxes on their investments in government bonds, as part of efforts to stabilize local currency in a volatile foreign exchange market.
Korea is also keen to be included in FTSE Russell’s World Government Bond Index (WGBI), where it is now on the Watch List, to further attract foreign investment to its capital markets.
With the signing of the MoU, Euroclear and Korea Securities Depository (KSD) “will be able to reach a higher level of relationship and build a strong partnership,” said KSD Chairman and Managing Director of Myongho Rhee. .
Euroclear Bank CEO Peter Sneyers added: “The Korean capital markets have recently made great strides in encouraging foreign investment, including the implementation of the new tax revision bill for non-residents and foreign companies, which means a real commitment to opening up a cross-border market. link. As a financial market infrastructure, we will continue to support and work closely with the market on its journey to include Korean Treasuries in the [WGBI].”