Settlement Date For Government Bonds Traded On The Korea Stock Exchange Market To Be Changed From T+0 To T+1

The Korea Stock Exchange (KSE) announced that the settlement date for bonds on its Government Bonds Market (GBM) would be changed from the current T+0 to T+1, effective on June 1, 2003. The GBM, formerly known as the Inter-Dealer Market, is a wholesale market where specific benchmark issues such as Korean Treasury Bonds, Foreign Exchange Bonds, Monetary Stabilization Bonds and Deposit Insurance Fund Bonds are traded. It should be noted that the settlement date (T+0) for bonds traded on other market, i.e., Ordinary Bond Market, and Repurchase Agreements (Repos) remain unchanged.

This change is one of the measures that KSE has taken to enhance the liquidity of government bonds and to maintain the vitality of the GBM. The KSE hopes that T+1 settlement date would enhance the market-making ability of the government bond dealers and the pricing of bonds, as well as ease the concerns about the possible settlement failure. It is also hoped that the change makes it easier for foreign investors to participate in the KSE's GBM