Lombard loans on the KRX.
Private credit against Korea Exchange-listed shares — pledged, not sold.
A Lombard loan against KRX-listed shares is credit secured by a pledge of equity listed on the Korea Exchange. The holder pledges the shares, draws cash against a fraction of their market value, retains ownership and dividends subject to structuring, and recovers the position on repayment.
- Facilities are arranged against equity listed on the Korea Exchange (KRX), Seoul (KOSPI/KOSDAQ); Busan (derivatives).
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in KRW or cross-currency.
- Structured under FSC / FSS, with disclosure from 5%.
The venue
Asia's largest derivatives market by contract volume; for cash equity, KOSPI 200 large-cap names anchor the institutional pool, while KOSDAQ technology issuers exhibit materially higher single-stock volatility relevant to LTV calibration.
Regulator and disclosure
The Korea Exchange operates under Financial Services Commission / Financial Supervisory Service (FSC / FSS). FSCMA Art. 147: large-shareholding reports required at 5% and at every 1% change above (10-day filing window for general investors). A pledge over a substantial line is arranged with that reporting regime in view, so that the facility is both discreet and compliant, and so that positions near a control or takeover threshold are not disturbed.
Structuring a facility here
Lombard facilities against KRX-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in KRW or another currency on a cross-currency basis, with the collateral held by a qualified custodian under bankruptcy-remote arrangements. Non-recourse, limited-recourse, and full-recourse structures are available; the choice interacts with the loan-to-value and the spread.
| Exchange | Korea Exchange (KRX) |
|---|---|
| City · Country | Seoul (KOSPI/KOSDAQ); Busan (derivatives) · South Korea |
| Regulator | Financial Services Commission / Financial Supervisory Service (FSC / FSS) |
| Disclosure | From 5% |
| Principal indices | KOSPI 200, KOSPI Composite, KOSDAQ 150 |
| Segments | KOSPI Main Market; KOSDAQ (technology / growth); KONEX (SME) |
| Currency · Tenor | KRW · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Financing a position listed on the KRX?
Request terms →See also the country overview: Lombard loans in South Korea.
Other exchanges in the region.
On this market, specifically.
Liquidity and the index
On the Korea Exchange the KOSPI 200 large caps are the natural home for Lombard credit — broad free float and dependable daily turnover let a single line support a meaningful advance. The wider KOSPI Composite adds depth, while the KOSDAQ 150 and the broader KOSDAQ technology board bring faster-growing but visibly more volatile names, and KONEX serves smaller issuers with thinner trade. That volatility feeds straight into loan-to-value: we place KOSPI 200 leaders toward the middle of the indicative band and hold KOSDAQ positions well below it, always sizing to how readily a holding could be sold down rather than to market value alone.
Structuring notes
Korean shares settle in book-entry form through the central depository, so a charge over listed stock is clean to take and to unwind. Structuring attention goes to two places: the Article 147 filing trail, which must move in step with the pledge, and the marked difference in behaviour between a stable KOSPI 200 holding and a fast-moving KOSDAQ technology name. We calibrate valuation triggers and headroom to the individual line, document dividend, voting and corporate-action treatment, and set out the enforcement path in advance. For non-resident clients we also confirm the investor-registration and custody arrangements before the Lombard facility is drawn.