KSD "Capital Market-Related Funds 5,554.2 Trillion Won... Up 7.6% YoY"

[Asia Economy Reporter Minji Lee] The Korea Securities Depository (KSD) announced on the 28th that the capital market-related funds handled last year amounted to 5,553.2 trillion won, a 7.6% increase compared to the previous year (5,162.6 trillion won). Capital market-related funds refer to the funds processed in connection with the KSD's operations in the capital market.

The average daily processed funds were 223 trillion won, approximately 1.8 times higher than the average daily processed funds of 125 trillion won in 2017 over the past five years.

The scale of capital market-related funds was composed of stock and bond trading settlement funds at 5,125.9 trillion won (93%), registered securities principal and interest at 2,048 trillion won (4.4%), and collective investment securities funds at 1,308 trillion won (2.4%). Among the trading settlement funds, over-the-counter (OTC) REPO settlement funds accounted for the largest share at 4,417.1 trillion won (86.2%). Bond institution settlement funds amounted to 5,741 trillion won (11.2%), followed by on-exchange bond settlement funds (640 trillion won, 1.2%), stock institution settlement funds (462 trillion won, 0.9%), and on-exchange stock settlement funds (235 trillion won, 0.5%).

OTC REPO settlement funds increased by 7.6% to 4,417.1 trillion won compared to the previous year, bond-related settlement funds rose by 13.4% to 6,381 trillion won, and stock-related settlement funds recorded a 25.6% increase to 697 trillion won. The KSD explained, "The increase in OTC REPO settlement funds is due to the call market, a short-term fund market, being operated mainly by banks, while securities companies and asset management firms, representing the secondary financial sector, actively utilized OTC REPO transactions as a means of short-term fund procurement."