KSD's integrated bond account tops $1.3b in cumulative trading after 2 years

The Korea Securities Depository's integrated government bond account, linked to international central securities depositories, has recorded 1,740 trillion won ($1.3 trillion) in cumulative trading since its launch.

The KSD said Friday that it held an industry meeting to mark the second anniversary of the account system's launch, sharing key operational achievements and future development plans for the integrated bond account.

The integrated government bond account supports foreign investors' custody and settlement of Korean government bonds and monetary stabilization bonds through custody accounts that international central securities depositories open with the KSD. It was introduced in June 2024.

Before the system was introduced, foreign investors seeking to trade Korean government bonds had to appoint a domestic custodian bank and open foreign currency and won-denominated accounts under their own names. Currency exchange and bond settlement payments could only be carried out through those accounts, a process that required navigating complex procedures such as the real-name financial transaction system and customer identification requirements.

As of the end of the first half of this year, the custody balance in the integrated government bond account stood at 27.4 trillion won, while cumulative trading volume, both domestic and international, since the system's launch reached 1,740 trillion won.

The KSD held an industry meeting Aug. 28 to mark the system's second anniversary, sharing its operational performance and regulatory improvement plans. About 60 working-level officials from 27 institutions attended, including the Ministry of Economy and Finance, the Bank of Korea, domestic investment dealers and custodian institutions.

The KSD also outlined its future plans. It intends to build an integrated information platform for the government bond account within the year and to support the government's move to allow offshore securities lending transactions between foreign investors.

"We will continue to do our best to improve foreign investors' access to Korea's government bond market and expand the use of the integrated bond account," a KSD official said.