Bank of China Seoul Branch Applies for Government Bond Trading License as Korea's Debt Enters WGBI

According to Yonhap Infomax, Bank of China's Seoul branch applied on July 21 for financial investment business licensing to conduct Korean government bond trading. The move comes as South Korea's government bonds were included in the World Government Bond Index, attracting increased foreign investor demand.

The applicant seeks authorization to trade government bonds, municipal bonds, and special bonds with professional investors only. This follows the Bank of Korea's decision earlier this month to raise its base rate by 25 basis points to 2.75%, marking the first increase in three and a half years. A financial regulator stated the license would enable the bank to supply bonds to asset managers and institutional investors tracking the WGBI.