KRX: Korea Securities Depository (KSD)
Korea Securities Depository (KSD)
Mandatory: All securities listed on the Korea Exchange must be held at the Korea Securities Depository (KSD).
The most commonly used payment system in the market for securities transactions is BOK-Wire. BOK-Wire is owned and operated by the Bank of Korea. It is an online network that connects the BOK with the financial institutions to allow transfer of funds on a real-time gross basis. It provides settlement finality for almost all transactions, from large-value foreign exchange transactions of banks to interbank settlement of individuals’ small-value ATM transactions. Settlement value through BOK-Wire accounts for around three quarters of all non-cash payments in Korea.
Overdrafts are not permitted for foreign investors as stipulated in the regulations.