Last Year Bond Settlement Amount 6169.2 Trillion Won, Up 11.2%... Daily Average 24.8 Trillion Won

[Asia Economy Reporter Lee Seon-ae] Last year, the bond settlement amount through the Korea Securities Depository reached 6169.2 trillion KRW, an increase of 11.2% compared to the previous year. The average daily settlement amount was 24.8 trillion KRW.

According to the Korea Securities Depository on the 27th, the settlement amount in the on-market bond market was 600.9 trillion KRW, up 28.2% from 468.6 trillion KRW the previous year. The settlement amount for bond institutional investors (off-market bond institutional settlement amount) was 5568.3 trillion KRW, an increase of 9.6% from 5080.6 trillion KRW the previous year.

The total bond transaction amount was 10,437.1 trillion KRW (average daily 42 trillion KRW), up 7.6% from 9,695.6 trillion KRW (average daily 39.4 trillion KRW) the previous year.

The on-market bond market transaction amount was 2492 trillion KRW, up 2.1% from 2439.8 trillion KRW the previous year, and the bond institutional investor transaction amount (off-market bond institutional transaction amount) was 7945.1 trillion KRW, up 9.5% from 7255.8 trillion KRW the previous year.

By market, the total settlement amount in the on-market bond market was 600.9 trillion KRW (average daily 2.4 trillion KRW), up 28.2% from 468.6 trillion KRW the previous year, accounting for 9.7% of the total bond settlement amount.

The government bond specialized distribution market was 457.1 trillion KRW (average daily 1.8 trillion KRW, up 27.0% year-on-year), the on-market general bond market was 17.8 trillion KRW (average daily 0.1 trillion KRW, up 22.8% year-on-year), and the on-market Repo market was 126 trillion KRW (average daily 0.5 trillion KRW, up 33.8% year-on-year). As the settlement amounts in the government bond specialized distribution market, on-market general bond market, and on-market Repo market all increased, the on-market bond market settlement amount rose compared to the previous year.

The total bond institutional investor settlement (off-market bond institutional settlement) amount was 5568.3 trillion KRW (average daily 22.4 trillion KRW), up 9.6% from 5080.6 trillion KRW the previous year, accounting for 90.3% of the total bond settlement amount.

By product type, government bonds were 3087.3 trillion KRW (average daily 12.4 trillion KRW, up 18.9% year-on-year), CDs and CPs were 1427.6 trillion KRW (average daily 5.8 trillion KRW, up 7.4% year-on-year), and short-term corporate bonds (maturity within 1 year) were 1053.4 trillion KRW (average daily 4.2 trillion KRW, down 8.8% year-on-year). Thus, settlement amounts for government bonds and CDs/CPs increased, while those for short-term corporate bonds decreased. Overall, bond institutional investor settlements increased compared to the previous year.

The Depository's securities trading service operates by offsetting the transaction amounts that trading parties must exchange and settling only the net difference. Therefore, the actual settlement amount is generally recorded as less than the transaction amount.