How the coupon payment process works

South Korea must go through the Depository, but the U.S. doesn’t seem to have a common central institution like that.

How the coupon payment process works

Issuer → Paying Agent (or issuer’s treasury) → Custodian/Brokerage System → Bondholder’s account

Paying Agent (Issuer-Appointed Agent)

• Korea : KSD (Korea Securities Depository)
  • Issuer
  • → Paying Agent
  • → KSD
  • → Broker / Custodian → Bondholder
• USA : banks or trust companies
  • Issuer
  • → Paying Agent (or Principal Paying Agent)
  • → Bondholders via transfer agent / custodians