Korea Securities Depository (KSD) and Clearstream, a subsidiary of Deutsche Börse Group, have signed a memorandum of understanding in Seoul.
The MoU will create a framework to support cross-border investment fund distribution by linking KSD’s FundNet and Clearstream’s global funds processing platform Vestima.
KSD and Clearstream agreed to implement the system linkage in 2014 and begin offering extended services to support cross-border fund distribution.
O Moon, senior managing director at KSD, said: “The partnership with Clearstream will significantly enhance our cross-border investment fund distribution capabilities.”
“In response to the diverse investment needs of customers we decided to establish a link with Vestima, the largest global fund processing platform which covers more than 120,000 investment funds. With this move we also promote lower costs and higher efficiency for our domestic [South] Korean asset management industry.”
Philippe Seyll, executive board member and head of investment fund services at Clearstream, added: “We are pleased about the new link to KSD and the [South] Korean investment funds market, a major domicile for investment funds in Asia, where markets are gradually opening up to offshore funds.”
