(1) Reasons for Proposal

In accordance with Article 181 (3) 2 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act, this Amendment aims to prescribe the scope of cash equivalent assets that sellers of securities in repurchase transactions have to hold to manage liquidity, the detailed ratio for such cash equivalent assets, and the day on which computation begins.

(2) Major Provisions

A. To prepare for cases where securities in repurchase transactions are not refunded to the seller, a certain ratio of cash equivalent assets shall be held to reduce liquidity risks in repurchase markets (Article 5-23 (2)).