Kiwoom Securities Selected as Government Bond Specialist Dealer... Participating in Market Making from October

Increase to 18 PD Companies... Ministry of Strategy and Finance "Expect Strengthening of Government Bond Supply Base, etc."

[Sejong=Asia Economy Reporter Moon Chaeseok] Kiwoom Securities will begin serving as a government bond primary dealer (PD) starting next month. By participating in market-making processes such as quoting, trading, and holding, it is expected to contribute to a more stable operation of the government bond market.

The Ministry of Economy and Finance announced on the 30th that Kiwoom Securities will be newly designated as a PD effective from the 1st of next month. Currently, 10 securities firms including Kyobo Securities and 7 banks including Kookmin Bank are serving as government bond PDs, and Kiwoom Securities will be joining them. The "preliminary PD" status, called PPD, has been granted to 2 securities firms including Yuanta Securities and 1 bank.

Starting from the 1st of next month, Kiwoom Securities will be granted PD status, increasing the number of PD companies to 18. (Data from the Ministry of Economy and Finance)

PDs are authorized to participate in bidding by acquiring government bonds in the issuance market. The PD system was introduced in Korea in 1999 to facilitate smooth underwriting in the government bond issuance market and to activate the secondary market. Since 2011, a promotion and demotion system between PDs and PPDs has been implemented to encourage competition among financial institutions and to select excellent institutions to participate in government bond market-making.

An official from the Ministry of Economy and Finance stated, "As the number of PDs increases, the supply and demand foundation for government bonds will be strengthened, contributing to a more stable operation of the government bond market. Kiwoom Securities was designated as a PPD in July last year and has actively engaged in government bond market-making for one year and three months, meeting other promotion requirements such as personnel and financial conditions for PD status."