Citi ties up with Korean securities agency to offer global securities lending

The partnership will start with Shinhan Investment Corp.

Citi has tied up with the Korea Securities Depository (KSD) in a move that offers local investors a way to benefit from securities lending income on their offshore holdings.

Securities lending is where financial assets are transferred temporarily from a lender to a borrower in exchange for a fee, with collateral to backup the transaction.

“Securities lending is a crucial component of a developed financial market and this partnership will further enhance Korea’s status as a leading global financial market. We are delighted to partner with Citi and use their global network to support local clients to maximise returns on their equity portfolios,” Kyong-Ryol Choi, head of securities and fund division said in a statement.

The partnership will start with local brokerage firm Shinhan Investment Bank although further clients are expected to onboard in due course.