Clearstream signs MoU with KSD
05 December 2022 Luxembourg
Image: Clearstream
Clearstream has signed a memorandum of understanding (MoU) with the Korea Securities Depository (KSD), with the intention of giving international investors post-trade access to Korea Treasury bonds (KTBs) and monetary stabilisation bonds (MSBs) through a restored cross-border link.
By reinstating its omnibus account services in Korea, Clearstream’s MoU will mean that foreign investors can forgo procuring a Investor Registration Certificate (IRC) or opening a segregated account with a local custodian in Korea.
Clearstream currently offers investors access to the Korean market, including all equity and debt securities listed on the Korea Exchange and Korea Securities Dealers Association Automated Quotation System, KTBs and MSBs, through IRCs.
This announcement follows the KSD’s recent MoU with Euroclear, which also seeks to improve foreign investment in the Korean market.
KTBs and MSBs are expected to become tax exempt on interest income and capital gains from 1 January 2023, pending approval from the National Assembly.
By reinstating its omnibus account services in Korea, Clearstream’s MoU will mean that foreign investors can forgo procuring a Investor Registration Certificate (IRC) or opening a segregated account with a local custodian in Korea.
Clearstream currently offers investors access to the Korean market, including all equity and debt securities listed on the Korea Exchange and Korea Securities Dealers Association Automated Quotation System, KTBs and MSBs, through IRCs.
This announcement follows the KSD’s recent MoU with Euroclear, which also seeks to improve foreign investment in the Korean market.
KTBs and MSBs are expected to become tax exempt on interest income and capital gains from 1 January 2023, pending approval from the National Assembly.
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