2024 Annual Report

Securities Lending

KIC lends securities through a systematic, stable and secure process,
generating additional returns.

KIC began its securities lending operations in 2007. We lend securities to high-credit institutions through our custody
lending agents and operate the securities lending program flexibly—adjusting to portfolio size, management schedule,
market conditions and more—in consultation with these agents.
To manage risk, we conduct daily compliance checks, block trades with countries with high settlement risk and monitor
borrower status through systematic procedures.
To prevent losses from securities lending, our lending agents hold collateral from borrowers in securities and cash on
KIC’s behalf. They also independently manage the cash collateral in accordance with KIC’s investment guidelines,
contributing to additional returns.