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.
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