Collateral and Fees

Collateral Provision and Management

Listed stocks
Listed bonds
Exclusions: bonds with a credit rating of lower than BBB / stock-related corporate bonds such as CBs, BWs, EBs / other bonds whose market values are difficult to calculate
Collective investment securities of ETFs
Other securities determined by the Enforcement Decree (listed DRs, etc.)

Types : Stocks, bonds, depository receipts, CPs, CDs, cash, foreign currency securities (US government bonds), foreign currencies (USD, EUR, JPY, CNY), deposits, etc.
Daily marking to market : Daily calculation of collateral ratios of each collateral provider
Additional collateral must be submitted when the collateral value falls below the requirement

Collected on the third business day of the following month
Borrowing fee : Collected by the KSFC from the borrower to be paid to the lender
Intermediary fee : Borrower and lender pay to the KSFC(intermediary)
Cash collateral fee : In the case cash collateral is kept by the KSFC, the fee is paid to the cash collateral provider

Principle : All economic rights (except voting rights) lie with the borrower
Rights issue, bonus issue, stock dividend : In principle, the issues are deemed to be delivered to the borrower with the SBL transaction executed on the day the new stocks are listed. However, in the case of rights issue, the lender's subscription application is needed.
Cash dividend, interest, price of fractional shares: Collected or paid to the relevant party on the date of payment