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Gold Custody and Settlement Service

KSD provides gold custody and settlement services for the gold spot market. The service covers gold deposit, settlement, withdrawal, and levying value added tax (VAT), etc. for the gold bullions being traded at the KRX gold bar market.

Custody and settlement service for gold

  • Custody of gold bullions
    • Deposited gold bullions in KSD should be supplied by qualified importers and manufacturers designated by KRX and pass quality-certification process under Korea Minting, Securities Printing & ID Card Operating Corp(KOMSCO). Current deposit-available gold bullions are designated as fineness 99.99% and weight 1kg.
  • Gold bullions settlement
    • Minimum trading and settlement unit of the KRX gold market is set at one (1) gram.
    • KSD provides gold settlement service twice a day (first service: 11:30 a.m., second service: 4:30 p.m.). KSD nets gold bullions and funds multilaterally and settles them by DVP.
  • Gold withdrawal
    • Buyers can withdraw gold bullions on a kilogram unit. Also, they are not allowed to withdraw gold bullions of certain brand or specific conditions. When they make a request of withdrawal, gold will be withdrawn at random basis from the gold depository of KSD.
      Gold withdrawal : Place for the withdrawal and time for the request, Available time for the withdrawal
      Place for the withdrawal and time for the request Available time for the withdrawal
      Receiving a withdrawal request that is made by 1:00p.m. (at the Seoul office) The withdrawal is available on the day when the request is made.
      Receiving a withdrawal request that is made from 1:00p.m. to 5p.m. (at the Seoul office) The withdrawal is available the day after the request is made.
      Receiving a withdrawal request that is made in the branch offices.(except the Seoul office)

      * Note: Once the distribution and withdrawal of gold bullions are completed, re-deposit of them is not allowed.

  • Levying VAT on the withdrawal of gold bullions
    • When participants withdraw gold bullions, KSD levies VAT under Restriction of Special Taxation Act. (cf. VAT is exempted about transactions at the KRX gold market.)
    • Participants should give KSD their or clients’ information in order to pay VAT. When they complete the payment, they can get electronic tax invoices issued by KSD.

The related institutions at the KRX gold market

The related institutions at the KRX gold market : Korea Exchange (KRX), Korea Securities Depository (KSD), Korea Minting, Securities Printing & ID Card Operating Corp(KOMSCO).
Korea Exchange (KRX) Korea Securities Depository (KSD) Korea Minting, Securities Printing & ID Card Operating Corp(KOMSCO).
KRX opened a gold spot market. It manages its general operation, transactions, and clearing. KSD provides settlement service of transactions at the KRX gold market, deposit and withdrawal of gold bullions, and levying VAT. KOMSCO does inspections and certifies the quality of domestic and foreign gold bullions.