The right is designated by the MOSF based on an evaluation of the bank's trading performance of Korea's treasury bonds in the secondary market. As a PD, SC First Bank can directly participate in Korea's treasury bonds market as an underwriter and act as a market-maker in the secondary market.
SC First Bank's PD designation is expected to further activate and increase global investors' participation in Korea's treasury bonds market. Reportedly, the trading volume in treasury bonds has increased noticeably, reaching approximately $1,274bn in 2009, a 60% increase in comparison to 2008.
Gene Kim, EVP and head of global markets of SC First Bank, said: "Korea is one of the most liquid markets in Asia with noticeably increased foreign investment, and I am delighted with this opportunity to actively provide Korea with more global investors and our global clients with improved opportunities to invest in Korea's treasury bonds market."
Reportedly, there are now 20 financial institutions acting as PDs in Korea, consisting of 6 banks, including SC First Bank, 12 securities companies and 2 foreign bank branches. Seoul, South Korea-based SC First Bank was created by the acquisition of the former Korea First Bank by Standard Chartered Bank in 2005.