The short selling of sovereign and corporate bonds is allowed in the over-the-counter (OTC) market only when there is a guarantee for settlement, such as a loan transaction. Short selling without borrowed securities or naked short selling is not allowed.

The Financial Supervisory Commission (FSC) Securities and Exchange Act and Korea Financial Investment Association (KOFIA) prohibit insiders, offices, and employees of listed companies and corporations from short selling their company’s securities.

The Korea Exchange (KRX) launched the Korea Treasury Bond (KTB) futures contract in 1999 and KTB futures and options in May 2002. The links below provide an overview of the trading methods and procedures for futures and options as well as specifications of KTB futures. 

The links below provide information on interest rate swaps, daily interest rate swap rates and other derivatives, and interest rate swap charts and historical data.

The Korea Money Broker Corp.’s website, which is linked below, provides a brief overview of currency rate swaps, daily rates for other market derivatives, and currency rate swap charts and historical data.