The Korea Securities Depository (KSD) announced on Jan. 15 that the amount of stock settlements stood at 338.40 trillion won (US$301.07 billion) last year, up 12.3 percent from a year earlier.
The amount of market settlements, which refer to settlements of securities traded between members of exchanges, amounted to 138.8 trillion won (US$123.49 billion), up 13 percent compared to the previous year, while that in the over-the-counter market increased by 11.8 percent to 199.60 trillion won (US$177.58 billion), according to data from the KSD.
By quarter, the amount of stock settlements decreased in the second and third quarters but turned to an increase in the fourth quarter. The figure hit a yearly high in the first quarter at 99.2 trillion won (US$88.26 billion) and a yearly low in the third quarter at 70.5 trillion won (US$62.72 billion).
The value of stock settlements accounted for 6.8 percent of the total stock transactions, which reached 4,948.8 trillion won (US$4.4 trillion) last year. The total amount of payment reductions through the securities settlement system reached 4,610.4 trillion won (US$4.1 trillion won) with a reduction rate of 93.2 percent. By market, payment reduction on the stock market amounted to 3,065.8 trillion won (US$2.73 trillion) with a reduction rate of 95.7 percent, while that on the over-the-counter market was 1,544.6 trillion won (US$1.37 billion) with a reduction rate of 88.6 percent.
The KSD said, “The minimization of settlement funds through the securities settlement system contributed to the safety and effectiveness of the securities market by improving capital liquidity of stock investors.”