[THE INVESTOR] German lender Deutsche Bank’s Seoul branch has been selected to join the list of preliminary primary dealers, giving the branch authority to underwrite government bonds starting July 1, said the Ministry of Strategy and Finance on June 27.
The new addition will increase the number of second-tier bond dealers in South Korea to four. The other three include the Seoul branches of BNP Paribas and Yuanta Securities and Korean insurance company Meritz. There will continue to be 19 first-tier primary dealers, including main local lenders such as Industrial Bank of Korea, Korea Development Bank and Hana Bank.
“Deutsche Bank’s Seoul headquarters cleared the requirements to become a preliminary primary dealer following their application submitted last month,” explained the ministry.
“The change is expected to solidify supply and demand of government bonds and aid in managing the market through accelerating the competition between first-tier and second-tier dealers.”
By Jung Min-kyung (
mkj1105@heraldcorp.com)
