Saemaeul Geumgo and Shinhyup Central Association Selected as KOREA RP Trading Institutions

Participation for One Year Starting Next Month 1st
"Securing Liquidity Supply Channels"

Saemaeul Geumgo Central Association and Shinhan Central Association announced that they have been selected as target institutions for the Bank of Korea's repurchase agreement (RP) trading sector.

In January, the Bank of Korea implemented a system reform through a resolution by the Monetary Policy Committee to include central associations of non-bank deposit-taking institutions within the scope of open market operation target institutions. Accordingly, Saemaeul Geumgo and Shinhan applied for selection as target institutions and will be able to officially participate in RP trading with the Bank of Korea starting in August.

Both organizations will be able to conduct RP trading with the Bank of Korea for the next year. RP trading is a method of trading securities by selling and buying them with the condition of repurchasing or reselling at a pre-agreed price after a certain period. Through this, both organizations can receive liquidity supply from the Bank of Korea via RP trading in emergencies such as deposit withdrawal crises. It also minimizes the sale of securities, thereby mitigating the negative impact on the financial market caused by large-scale sales.

Kim In, Chairman of Saemaeul Geumgo Central Association, stated, “To align with the purpose of the Bank of Korea’s selection of open market operation target institutions, we plan to actively participate in the Bank of Korea’s open market operation process. We will continuously manage to hold sufficient high-liquidity bonds subject to the Bank of Korea’s RP trading during normal times to enhance the asset soundness of Saemaeul Geumgo Central Association and ensure adequate liquidity supply to Saemaeul Geumgo in emergencies.”

Son Jae-wan, Head of Fund Management at Shinhan Central Association, said, “Being included as a target institution for the Bank of Korea’s RP trading will allow Shinhan’s liquidity to be managed more flexibly in the future. This will enable us to maintain a more stable flow of funds.”