South Korea: Updates to settlement requirements for KGBs and MSBs
Clearstream Banking1 informs clients that effective
30 June 2025
clients must manually input investor details into their domestic settlement instructions as detailed below.
Impact on instructions
Domestic settlement
The KSD requires the domestic free of payment (FOP) and against payment instructions related to KGBs and MSBs to indicate the IRC/LEI and name of the investor.
Clients are therefore required to indicate these details in the first two rows of field :70E::SPRO// in Xact via Swift and Xact File Transfer (Settlement instruction processing additional details in Xact Web Portal) as follows:
Investor Code | Investor Identifier |
1 | IRC number |
2 | LEI |
:70E::SPRO//BO/investor code/investor identifier
Investor name
Example:
:70E::SPRO//BO/1/12345
ABC Bank
or
:70E::SPRO//BO/2/123456ABCDEFG1A2BC34
DEF Bank
The details provided in the first two rows of field :70E::SPRO// (Settlement instruction processing additional details in Xact Web Portal) must match with the details at the domestic counterparty. As such, clients are strongly advised to align on these details between themselves and their domestic counterparty before putting in their settlement instructions.
Clearstream Banking clients who already have an IRC number must continue to use this number and cannot substitute it with the LEI or any other identification method.
Clearstream Banking shall bear no responsibility for any illegitimate or erroneous use and/or omission – for any trading or other purpose – of such investor IRC/LEI and investor name. Clearstream Banking does not validate whether the investor IRC/LEI and investor name that clients use in their settlement instructions sent to Clearstream Banking represent the legitimate investor who ordered the underlying transaction. Clearstream Banking shall therefore not be responsible if a client uses an investor IRC/LEI and investor name belonging to an investor other than the investor on whose behalf the relating transaction has been or was deemed to be executed or settled.
Further information
The Market Link Guide – KGBs and MSBs will be updated accordingly.
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
------------------------------------------
1. Clearstream Banking 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 Banking AG (for Clearstream Banking AG clients using Creation accounts), registered office at Mergenthalerallee 61, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.