South Korea: Partial settlement on listed securities II

Following Announcement A25003, Clearstream¹ informs clients that effective 

immediately

the Korea Securities Depository (KSD) has lowered the settlement amount, that automatically initiates partial settlement, from KRW 5 billion to KRW 1 billion.

Impact on clients

For eligible listed securities (excluding fixed income), clients are advised that against payment transactions with domestic counterparties can only be in amounts of up to KRW 1 billion to prevent potential compulsory partial settlement in the market. 

Instructions that exceed the limit of KRW 1 billion shall be rejected by Clearstream. Impacted clients shall be informed of such rejections and expected to re-instruct in smaller amounts with immediate release to avoid failed settlement.

Note: Clearstream shall not be responsible for any loss, claim, liability and/or expense in relation to partial settlement in the market. Clients who do not adhere to the above requirement to prevent potential compulsory partial settlement in the market shall undertake to hold Clearstream harmless and indemnify Clearstream from any such loss, claim, liability and/or expense in relation to partial settlement in the market.

Further information

Settlement services – South Korea – Equities and corporate bonds will be updated accordingly.

For further information, clients may contact Clearstream Client Services or their Relationship Officer.

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1. Clearstream refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Europe AG (for Clearstream Europe AG clients using 6-series accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.
Clearstream Banking S.A. is registered as an Australian CS (Overseas) Facility, under subsection 824B(2) of the Corporations Act 2001, with registration number ARBN 675 244 783.