Government Bond Omnibus Account Surpasses KRW 1,740 Trillion in Cumulative Transactions Two Years After Launch, Establishing Itself as Infrastructure for Foreign Investment in Korean Government Bonds

[Financial News] KSD’s omnibus account for government bonds, linked to international central securities depositories (ICSDs), surpassed KRW 1,740 trillion in cumulative transaction value two years after its launch. Its custody balance also exceeded KRW 27 trillion as foreign investment in Korean government bonds increased around the inclusion in the World Government Bond Index (WGBI).
KSD announced on the 11th that it held an industry meeting on the 28th of last month to mark the second anniversary of the launch of its ICSD-linked government bond omnibus account system and shared its key operational achievements and future development plans. About 60 working-level officials from 27 institutions, including the Ministry of Economy and Finance, the Bank of Korea (BOK), domestic investment trading firms and custodial institutions, attended the meeting.
The government bond omnibus account is a system that supports the custody and settlement of government bonds and Monetary Stabilization Bonds arising from foreign investors’ domestic and overseas government bond investments through accounts that ICSDs have opened with KSD. Foreign investors can trade Korean government bonds through ICSDs without opening separate accounts in Korea.
The system’s usage has steadily expanded since the service began in June 2024. As of the end of the first half of this year, the custody balance in the government bond omnibus account stood at KRW 27.4 trillion. Cumulative transaction value, combining onshore and offshore transactions since the launch, exceeded KRW 1,740 trillion.
Transaction value rose sharply ahead of the start of Korea’s inclusion in the WGBI in March and has remained high since then. KSD has also improved related systems and regulations by extending settlement deadlines and allowing domestic financial institutions to conduct offshore settlements through ICSDs.
KSD plans to establish the Integrated Information Platform for the Government Bond Omnibus Account within this year. The platform will allow domestic and overseas investors to view information on the account and government bond investments at a glance. It will also support the government’s plan to permit offshore securities lending transactions between foreign investors.
A KSD official said, "We will continue to improve the related infrastructure and services to enhance foreign investors’ access to the Korean government bond market and broaden the user base of the government bond omnibus account."
[email protected] Bae Han-geul Reporter