Investing assets entrusted by the government and Bank of Korea in the global financial market
KIC lends securities using a systematic procedure and in a stable and secure manner, generating additional returns.
KIC started its securities lending operations in May of 2007.
We lend securities to high-credit institutions through our custody lending agents. And we run our securities lending program flexibly, according to portfolio asset volume, management schedule, market conditions, etc., through consultations with these agents.
To manage risks, we oversee compliance on a daily basis, block trades with countries of high settlement risk and monitor the status of borrowers based on systematic procedures.
To prevent losses from the lending of securities, our lending agents hold collateral from borrowers in securities and cash on KIC’s behalf. They also independently manage the cash collateral funds within KIC’s guidelines for liquidity and risk, contributing to additional returns.