KSD and Clearstream to sign an Agreement on the Omnibus Account Services for Korea Treasury Bonds and Monetary Stabilization Bonds

1. Overview

□ On 30 August 2023, Korea Securities Depository (KSD) signed an agency agreement with Clearstream in Luxembourg to establish and operate an omnibus account system* for Korea treasury bonds (KTBs) and monetary stabilization bonds (MSBs).

* An omnibus account is opened at KSD under the name of Clearstream, as an international central securities depository (ICSD), which allows for the integrated custody and management of Korean government bonds on behalf of offshore investors without having to use segregated accounts in Korea.

ㅇ "Today's signing is critically important as KSD and Clearstream have closely worked together and agreed to finalize legal and regulatory consultations," said Mr. Soonho Lee, Chairman & CEO of KSD during the signing ceremony. "In the coming months, both organizations will spare no efforts to establish an optimal cross-border link."

ㅇ Mr. Philip Brown, CEO of Clearstream Banking S.A., added: "Having been the only ICSD to provide access to the Korean market via the existing IRC investment route for more than a decade, Clearstream is actively committed to establish a strong and reliable link between our ICSD and KSD, further encouraging foreign investment in the Korean market."

2. Future Plan

□ Having signed the contract with Clearstream, KSD will leverage the strong momentum to push ahead with the system development for the omnibus account service.

ㅇ The service is expected to go live within the first half of 2024.

*(Photo) From left : KSD Chairman&CEO Soonho Lee, and Clearstream CEO Philip Brown