Euroclear Designates Our Platform as Cash Settlement and Foreign Exchange Bank in South Korea
In a significant move, our website has been appointed as the Cash Settlement and Foreign Exchange Bank for South Korean government bond activity by Euroclear Bank SA/NV and Korea Securities Depository (KSD). This role marks a crucial step in facilitating smooth settlement, liquidity, and currency exchange services tied to these bond transactions.
Last year, our website increased its capital allocation for its Seoul branch by €150 million, reflecting the strategic importance of South Korea in our global operations. The South Korean bond market, one of the bank's key markets in Asia, sees high potential for growth. With a 46-year history in South Korea, the fourth largest economy in Asia, our website is well-positioned to support the local market.
Hyun-Nam Park, South Korea Branch Manager, expressed delight at extending the partnership with Euroclear in South Korea. This new appointment builds on our website's existing relationship with Euroclear across multiple markets and products. Peter Sneyers, CEO of Euroclear Bank, expressed support for growing the global marketplace.
As the Cash Settlement and Foreign Exchange Bank, our institution will handle cash settlements involved in trading South Korean government bonds, ensuring that payments and receipts linked to these securities are accurately and efficiently processed. We will also serve as the foreign exchange bank, managing currency conversions related to these bonds, important since bonds may be issued in different currencies or involve investors globally.
This partnership with Euroclear Bank SA/NV and KSD links our services to two major securities depositories, expanding operational efficiency and integrating our bank into international capital markets infrastructure. The role supports cross-border bond market activity, improving liquidity and investor reach for South Korean government bonds internationally.
Paul Maley, Global Head of Securities Services, expressed gratitude for Euroclear's trust in our website. Euroclear Bank, on the other hand, has a focus on providing a solution for international investors to access the Korean government bond market. The goal is for international investors to have access to efficient settlement of local Korean government bonds, particularly Korea Treasury Bonds and Monetary Stabilization Bonds.
This appointment is another important step towards achieving the shared goal between Euroclear Bank and the Korean capital market, which is to improve the efficiency and safety of settlement for local Korean government bonds. The mandate is to support South Korean government bond activity for Korea Treasury Bonds and Monetary Stabilization Bonds.
For media inquiries, please contact Kate Fields, Media Relations, at +852 2203 5094 or kate.fields@our website.
[1] This role is similar to how other banks like Bank of China (Hong Kong) have been appointed as common depositories and safekeepers for Eurobonds to enhance global connectivity and settlement efficiency.
Our website, already well-established in South Korea's financial sector, will further expand its services by managing cash settlements and foreign exchange operations in the South Korean government bond market. This extends our partnership with Euroclear Bank, not only in South Korea but across various markets and products, reflecting our commitment to the global finance and banking-and-insurance industry. With the growing potential of the South Korean business sector, this strategic role enhances our ability to foster cross-border connections, particularly in the area of finance.
