kmb Korea Money Brokerage Corp.

Money Market

We are satisfying vairous short-term money transaction needs based on long tradition, knowhow and performance from top market share.


Korea Money Brokerage Corp. started its money market business as an exclusive broker of domestic call money transactions in 1996. Since then, we have been expanding our business areas in this market by adding the brokerage of, among other things, Repo (in May 1997), secured call money and commercial paper (CP).

Our customer base covers all of the financial institutions in Korea, resulting in trillions of won in daily trading volume.

We are recognized as one of the best brokerage firm in the money market of Korea with a constant top market share of unsecured call money (since the foundation) as well as unmatched presence in the secured call.


Unsecured Call Money

Unsecured call money market is where financial institutions adjust their temporary excess or deficit of funds with the short-term borrowing or lending with maturities ranging from overnight to a maximum of 90 days. Call rates are decided based on key interest rates set by the Bank of Korea (BOK), being adjusted to the money supply and demand of the market. Every day, the BOK announces a weighted-average rate of overnight unsecured call transactions conducted by three brokerage companies. Main call money lenders, which primarily affect the money supply in the market, are asset management companies and domestic banks while borrowers are securities companies, foreign banks and domestic banks.

Division Description Remarks
Currency Korean Won (KRW)
Period Within 90 days
Unit KRW 100 million Minimum transaction amount KRW 100 million
Transaction Time Unlimited
Price Notice Annual interest in percentage To the nearest two decimal points

Transaction Flow

한국자금중개(주)와 콜 대여기관, 콜 차입기관 간의 거래 구조도
AOrder Submission Stage
  • 1. Call lender applies for call lending
  • 2. Call borrower applies for call borrowing
  • 3. Brokerage company enters submitted information after submission of order
BConclusion of transaction
  • 1. When transaction conditions are met, request call lender for credit limit (process temporary transaction)
  • 2. Call lender confirms conclusion of transaction after checking credit limit
  • 3. Brokerage company notifies call borrower the confirmation of transaction
  • 4. Send transaction statement to call lender and call borroer
CMoney Transaction
  • 1. Call lender transfers call money to call borrower via payment reserves of the Bank of Korea (BOK-Wire) or bank current account
  • 2. If the call lender is a money operator, instruct trust bank for operation who then transfers money
  • 3. Brokerage company checks call borrower for completion of money transfer


Repo(Repurchase Agreement;RP) trade is the sale of securities carried out with an agreement that the seller buys the securities back at a certain point of time. The transaction is considered the sale and purchase of securities in legal terms, but, in economic effect, it is more of a secured loan where the seller of securities (Repo seller) borrows cash from the buyer (Repo buyer) during the term of the agreement by pledging the securities as collateral. Repo trade can be directly conducted between the parties or through a broker, like KMB, who finds a counterparty meeting the conditions of a transaction.

Division Description Remarks
Currency Korean Won (KRW), US Dollar ($), etc.
Period Unlimited
Unit Unlimited
Target Securities Among securities according to the 'Capital Market Act', bonds in Korean won, CP and ETF serviced by Korea Securities Depository's Repo system
Participating Institutions Financial institutions and equivalent foreign entities such as banks, securities, asset management, trust, insurance companies, mutual savings banks, agricultural and fisheries cooperatives, credit cooperatives, Saemaeul Geumgo, post offices, securities and financial companies and pension funds
Price (Interest Rate) Market Interest Rate To the nearest two decimal points
Mortgage Rate 105% is typical based on bond price
Transaction Time Unlimited
Terms and Conditions 'Terms and Conditions for Repurchase Agreement between Institutions' stated by the Korea Financial Investment Association is generally used

Transaction Flow

한국자금중개(주)와 Repo 매수기관, Repo 매도기관, 한국예탁결제원, 한국은행 간의 거래 구조도

Repo transaction type

Classification by Transaction Period
  • 1. Overnight Repo: 1 day maturing
  • 2. Term Repo: 2 or more days of maturing
  • 3. Bank of Korea Repo: Transaction between Bank of Korea and open market operation target
Classification by Transaction Period
  • 1. Overnight Repo: 1 day maturing
  • 2. Term Repo: 2 or more days of maturing
  • 3. Open Repo: Automatically extended each day until notification of either party without setting the maturity
Classification by Bond Storage
  • 1. Transferred Repo: Buyer stores bond
  • 2. Agreement on Possession Repo: Seller stores bond - Customer Repo
  • 3. Third Party Repo: Store and manage bond in repurchasing institution (KSD) - between institutions, Bank of Korea Repo

Electronic Short-term Bond

Electronic short-term bond means bond securities within one year maturity that are electronically issued with conditions according to the 'Electronic Short-term Bond Act'. We brokerage electronic short-term bonds (within 30 days maturity) issued by financial investment companies (except management financial investment companies) in the form of recruitment. Also, we brokerage already issued electronic short-term bonds for distribution between financial institutions.

Division Description Remarks
Currency Korean Won (KRW)
Period Brokerage Issuance: Within 30 days / Distribution: Within 1 year
Unit KRW 100 million
Transaction Time Unlimited
Interest Rate Market Interest Rate

Brokerage Issuance Transaction Flow

한국자금중개(주)와 발행기관, 매수기관, 한국예탁결제원, 한국은행 간의 거래 구조도

Distribution Transaction Flow

한국자금중개(주)와 한국예탁결제원, 전단채 매도기관, 전단채 매수기관 간의 거래 구조도


CP (Commercial Paper) is an accommodation bill issued to meet a company's short-term financing needs without a commercial purpose. Being referred to as "commercial paper securities" in the Financial Investment Services and Capital Markets Act ("Capital Markets Act"), CP is primarily issued by a company with good credit status since it is not backed by collateral. Its simple issuing procedure and wide investment demand are among many advantages that have promoted its use as a short-term financing instrument. It is now used for the long-term financing as well with the abolition of the maturity limit under the Capital Markets Act. KMB is authorized to broker, arrange and serve as an agent in the trade of CPs issued and held by financial institutions according to the Act. We also provide brokerage services for the recently launched "electronic short-term bonds".

Division Description Remarks
Currency Korean Won (KRW)
Maturity Unlimited
Unit of issuance Unlimited
Credit rating Credit ratings from two or more credit rating agencies
Major transaction target CP issued or held by financial institution

Transaction Flow

한국자금중개(주)와 CP발행/매도기관, CP매수기관, 한국예탁결제원 간의 거래 구조도

CP credit rating of Korea

Division Rating Rating definition
Investment Grade A1 Highest level of timely repayment capacity with stability not affected by foreseeable future
A2+, A2, A2- excellent timely repayment capacity with less stability than A1
A3+, A3, A3- Good timely repayment capacity with less stability than A2
Speculative Grade B+, B, B- Timely repayment capacity but speculative element in stability depending on short-term changes in conditions
C Highly speculative in terms of timely repayment capacity and stability
D Currently in default