Mizuho Bank, Ltd. (President & CEO: Koji Fujiwara) has been selected to participate in the Open Market Operations (OMOs) conducted by the Bank of Korea. Mizuho Bank will be the first Japanese bank to participate in the Open Market Operations and one of the six foreign banks among the thirty-one eligible financial institutions. Mizuho Bank will participate in the Open Market Operations from August 1, 2017.

The OMOs are the central bank’s key monetary policy instruments to control money supply by selling and buying securities held at the central bank with eligible financial institutions in the open market, thereby influencing the amount of money in circulation and/or interest rates, and enabling the central bank to swiftly implement its monetary policies through the transactions with eligible financial institutions.

Three major monetary policy instruments in the OMOs are: Monetary Stabilization Bond issuance, bond transactions with repurchase agreements (hereafter, “Repo Transactions”) and deposits at the Monetary Stabilization Accounts. Mizuho Bank will be participating in the weekly OMOs of Repo Transactions and deposits at the Monetary Stabilization Accounts. The participation will enable Mizuho Bank to fund and invest Korean Won with the Bank of Korea, leading to more effective cash management.

Mizuho Bank Seoul has been expanding business with Korean and Japanese corporates in South Korea by providing a broad range of financial services since its business start in 1972. The Bank established Seoul Treasury Office in 2011 and has widened its business in the Korea financial markets. Participating in the OMOs, Mizuho Bank is committed to providing further enhanced financial services to customers as well as continuing to contribute to the development of the South Korean economy and financial markets.