(Bloomberg) -- Trading in South Korean bonds via accounts set up for foreign investors hit 4.5 trillion won ($3.3 billion) in early October, a sign governmental reforms to make their lives easier are bearing fruit.
Transactions have grown exponentially from just 108 billion won in July, as the omnibus account system got off the ground, data from the Korea Securities Depository show. Omnibus accounts allow global funds to skip opening a local account and route business via clearing houses such as Euroclear instead.
Seoul has been keen to boost overseas trading in its debt as part of various reforms mandated by FTSE Russell in order for the country to win inclusion in the benchmark World Government Bond Index. While a number of analysts had warned of low Euroclear usage, the index provider nevertheless gave Korea a green light for accession this month.
Korean bonds will be included in the WGBI from late 2025, a step the finance ministry expects will attract $56 billion of inflows.
--With assistance from Shinhye Kang.
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