Lombard loans on the KRX.
Private, securities-backed 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. In plainer terms it is a share-backed loan: a loan against shares, not a disposal of them.
- Facilities are arranged against equity listed on the Korea Exchange (KRX), Seoul.
- 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 the FSC / FSS regime, with disclosure at 5%.
The venue
The Korea Exchange runs 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 the Financial Services Commission / Financial Supervisory Service (FSC / FSS). FSCMA Art. 147: reports due within five days at 5%, on each 1% change and on any collateral agreement covering 1% or more; later for holders with no management-influence purpose.
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.
For who must report a pledge, and what an enforcement would make public, in each market the firm covers, see the comparison of share pledge disclosure rules.
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. Unlike a stock loan in the securities-lending sense, title does not pass: the line stays registered to the holder for the life of the facility.
| Exchange | Korea Exchange (KRX) |
|---|---|
| City · Country | Seoul (KOSPI/KOSDAQ); Busan (derivatives) · South Korea |
| Regulator | Financial Services Commission / Financial Supervisory Service (FSC / FSS) |
| Disclosure | Substantial holdings at 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 |
The South Korea market as a whole
The South Korea country overview sets the KRX in context: the national disclosure regime, the wider securities-backed lending picture, and the common ground behind any loan against shares listed in South Korea.
- Lombard loans in South Korea — the country overview: the national disclosure regime, currency, and how a facility is arranged.
Financing a position listed on the KRX?
Request terms →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.
KOSDAQ’s 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.