Thailand Takes Notice of Korean Bond Market... Benchmarking K-BOND and Credit Rating System

[Financial News] Officials from Thai financial authorities and financial companies visited Korea to examine the infrastructure of the over-the-counter (OTC) bond market. They showed particular interest in K-BOND, which underpins OTC bond trading, as well as the bond price information system and the corporate bond credit rating system.
According to the Korea Financial Investment Association on the 21st, a delegation from the Thai Bond Market Association (ThaiBMA) visited the Korea Financial Investment Association in Yeouido, Seoul, that day to discuss ways to develop the bond markets of both countries and expand cooperation in the fields of self-regulation and market information.
This visit marked the first official schedule of the ThaiBMA delegation's visit to Korea. A total of 14 people attended, including ThaiBMA Chairman Prasan Triratborakul, association executives and board members, representatives from major Thai banks and securities firms, as well as officials from the Ministry of Finance and the Bank of Thailand (BOT).
ThaiBMA serves as the self-regulatory organization (SRO) for the Thai bond market while simultaneously acting as a market information center and a pricing agency. It is responsible for market surveillance and supervision of member firms, as well as providing bond trading information and yields, calculating market prices, and establishing market standards.
The focus of the discussion that day was on the infrastructure of the Korean over-the-counter (OTC) bond market. The Korea Financial Investment Association introduced the growth of the domestic capital and bond markets, along with the OTC bond market's self-regulatory framework, the dedicated bond trading system K-BOND, and the systems for calculating bond yields and indices and providing market information.
In particular, the Thai delegation showed interest not only in the self-regulation and market information management systems of the domestic over-the-counter (OTC) bond market but also in the credit rating system and the role of credit rating agencies in the corporate bond market. Both sides exchanged views on how to operate systems to enhance the price discovery function, transparency, and market confidence of the bond market.
Taking this meeting as an opportunity, the two organizations agreed to expand working-level exchanges in common areas, such as self-regulation, bond market data and pricing information, and market infrastructure.
Hwang Sung-yup, Chairman of the Korea Financial Investment Association, stated, "ThaiBMA shares many similarities with the Korea Financial Investment Association as it performs self-regulation, market information, and bond pricing evaluation functions." He added, "I hope that this visit will serve as an opportunity for both organizations to share market operation experiences and know-how, and to further expand practical exchanges for the development of the bond markets in both countries."

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