Derivative professionals in Korea have set up the Korean Swap Dealers Association to address domestic issues related to the growing derivatives market. K.K. Yoo, deputy general manager of Kookmin Bank in Seoul, said "The basic objective is to promote the development of the derivatives market and create standardized local market practices." Yoo is also serving as co-chairman alongside S.W. Hwang, head of derivatives marketing at Citibank in Seoul. Hwang was on vacation and could not be reached.
Yoo said the association, dubbed KOSDA, is made up of 20 domestic and international banks as well as local law firms specializing in financial matters. KOSDA will look to organize seminars to educate market players on derivative products as well as establish a regular dialogue with regulators. He added that the organization will also create subcommittees to address specific issues such as the fixing of short-term interest-rate swap levels. Yoo noted that while KOSDA was established to focus on issues of local concern, the body will look to work with the International Swaps and Derivatives Association on overlapping matters.
"This should aid in the development of the market here and create standard market practices," noted one derivatives head at an international bank in Seoul.