Securities Custody Services for overseas official institutions

  1. Financial Stability
  2. Payment Systems
  3. Securities Custody Services for overseas official institutions

Background

The Korean bond market has grown significantly in line with Korea’s steady economic growth and robust fiscal soundness, and investment from the overseas official sector in particular has increased greatly in recent years.

In this regard, the Bank of Korea (hereinafter ‘the BOK’) launched securities custody services from April 2014, to support overseas official institutions such as foreign central banks, international financial institutions and foreign governments investing in Korean Treasury Bonds(KTBs) and Monetary Stabilization Bonds(MSBs).

The BOK, as the authority issuing KTBs and MSBs, will do its utmost to provide overseas official institutions with the most reliable securities custody services in terms of safety and efficiency.

Definition of Securities Custody Services

Securities custody services include a comprehensive array of services provided by a custodian on behalf of investors, including safekeeping of securities and related services such as settlement, securities and cash transfers, interest receipt and payment, redemptions, tax withholding, reporting, reconciliation, foreign exchange, performance evaluation, securities lending, automatic investment program, term deposits, etc

Scope of BOK Business

The BOK’s securities custody service consists of safekeeping, settlement, securities and cash transfers, interest collection and payment, tax withholding, redemptions, reconciliations, reporting of daily transaction results, etc.

  • Eligible customers: foreign central banks, international financial institutions, foreign governments
  • Eligible securities: Korean Treasury Bonds/Bills, Monetary Stabilization Bonds

In accordance with the Terms and Conditions signed by a Client and the BOK, the BOK opens a securities custody account and a Korean won account under the Client’s name at the BOK, and provides the Client securities custody services through these accounts.

For more information or inquiries, please contact the Debt Securities Team in the Office of Treasury & Debt Securities via phone (82-2-759-4752,4718),e-mail ( bokcustody@bok.or.kr)or fax (82-2-759-4720).

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