Bond registration

Bond registration (채권등록/債券登錄) is an optional registration of bonds with a government-approved registrar. Bond registration's purpose is to make it easy to issue bonds and to make sure of preservation of bondholder's right.

Key words
registered bond, bearer bond, non-bearer bond, registrar, bond registry

Statutory ground
Bond registration was adopted by the Registration of Bonds and Debentures Act (공사채등록법/公社債登錄法). Under this Act, the bond means: Article 2 (Definitions)
 * 1) A bond issued by a local government;
 * 2) A bond issued by a corporation pursuant to the provisions of special Acts;
 * 3) A corporate debenture;
 * 4) A bond which is designated by the Financial Services Commission from among the bonds issued by foreign governments, foreign public organizations or foreign corporations; and
 * 5) A certificate of deposit (CD).

Effect of bond registration
Once the above-mentioned bond is registered, bond certificates shall not be issued regarding registered bonds. When the registrar registers bonds for which bond certificates have been already issued, the bond certificates shall be withdrawn.

In order to transfer registered bearer bonds, to grant collateral on them, or to entrust them as trust propery, their owner is required to register them with the registrar. In case of non-bearer bonds, the bond registry is kept by the issuer.

Bond registrar
Pursuant to this Act, bond registration shall be handled by a corporation (called the "registrar") prescribed by Presidential Decree, which has been registered with the Financial Services Commission. Article 3 of the Act.

A corporation that may register with the Financial Services Commission and conduct the registration affairs of bonds and debentures pursuant to Article 3 of the Act shall be any of the followings: Article 1-2 of the Enforcement Decree
 * 1) The Korea Securities Depository established under Article 294 of the Financial Investment Services and Capital Markets Act; or
 * 2) Financial institutions prescribed in Article 10 (2) i through iii of the Enforcement Decree of the above Capital Markets Act.

The registrar shall keep the registry of bonds and debentures (공사채등록부/公社債登錄簿)