Treasury bond auctions are handled through the Bank of Korea’s (BOK) electronic bidding system, BOK-Wire.

In January 2005, the Korea Stock Exchange (KSE), the Korea Futures Exchange (KOFA), and the KOSDAQ Stock Market Inc. merged to form the Korea Exchange (KRX). The KRX’s Administrative Service Division acts as the back office for the trading divisions, while the Market Oversight Division is responsible for monitoring trading activities and mediating disputes.

Secondary market trading is available through KRX’s Interdealer Market and General Bond Market, and the Korea Financial Investment Association’s (KOFIA) Free Board. Over-the-counter (OTC) trading dominates bond trading, with financial institutions and institutional investors purchasing most of the debt. Most bond issues are also listed on KRX.

Trading volumes of local currency government and corporate bonds transacted in the secondary markets are available at KoreaBondWeb, which is linked below.

Direct participation in Korean exchanges is only available to registered securities firms. Other institutions or individual investors may participate in auctions, trade in bonds, and settle and deposit securities through OTC members (such as KoreaBondWeb or E*TRADE Korea).

Futures and options contracts, including futures and options on treasury bonds and monetary stabilization bonds, are traded on KRX.

Links are provided below for bond trading procedures on the KRX and the OTC markets.