Clearstream receives QFI status in Korea
30 March 2023 Korea
Image: SeanPavonePhoto/stock.adobe.com
Clearstream has become the first international central securities depository (ICSD) to be granted the Qualified Foreign Intermediary (QFI) status from the Korean National Tax Service (NTS).
A memorandum of understanding between Clearstream and the Korean Securities Depositary (KSD) was signed in December 2022, with the intention of reestablishing a cross-border link between Luxembourg and Korea, allowing international investors post-trade access to Korea Treasury Bonds.
By gaining the QFI status, Clearstream moves closer to this goal and the provision of its omnibus account services to the Korean market.
When these services are rolled out, foreign investors will be able to settle and safekeep Korean Treasury Bonds (KTBs) and Monetary Stabilisation Bonds (MSBs) through existing Clearstream accounts, benefitting from tax exemption on interest income and capital gain.
This will bypass the need for an Investor Registration Certificate or a segregated account to engage with the market.
A memorandum of understanding between Clearstream and the Korean Securities Depositary (KSD) was signed in December 2022, with the intention of reestablishing a cross-border link between Luxembourg and Korea, allowing international investors post-trade access to Korea Treasury Bonds.
By gaining the QFI status, Clearstream moves closer to this goal and the provision of its omnibus account services to the Korean market.
When these services are rolled out, foreign investors will be able to settle and safekeep Korean Treasury Bonds (KTBs) and Monetary Stabilisation Bonds (MSBs) through existing Clearstream accounts, benefitting from tax exemption on interest income and capital gain.
This will bypass the need for an Investor Registration Certificate or a segregated account to engage with the market.
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