Financial Supervisory Service(FSS) enacted “Guidelines on Margin Requirements for Non-Centrally Cleared OTC Derivatives Transactions”(the “Guideline”) on 1st March 2017. This Guideline was introduced in accordance with G20 declaration regarding restrictions on OTC derivative transactions after the global financial crisis in 2008. The main feature of this restriction is imposing mandatory obligations to provide margin on OTC derivative transactions which are not cleared through Central Counterparty. For this, the Basel Committee on Banking Supervision(“BCBS”) and the International Organization for Securities Commission(“IOSCO”) jointly drafted “Margin requirements for non-centrally cleared derivatives” in March 2015 to give standard guidance to the countries which are preparing margin rules. Then, the Guideline has some deviations from the global standard so it should be updated to match the global standard considering other jurisdictions’ margin rules to avoid possible regulatory arbitrage. First, the Guideline has no explicit provision regarding Covered Bond so special treatments on Covered Bond shall be included in the Guideline. Second, the Guideline only applies to financial institutions but, to match global standard, the scope of the applicable entities shall be expanded to systemically important non-financial entities. Third, if KRW cash will be used as eligible collateral for initial margin, Korea Securities Depository(“KSD”) shall obtain trustee license or the cash initial margin shall be protected from the creditors of collateral provider or KSD by legal protection through the amendment of Financial Investment Services and Capital Markets Act(“FSCMA”). Forth, the Substitute Compliance provision under the Guideline is insufficient from the perspective of the global standard so the scope of the Substitute Compliance shall be expanded to avoid possible conflict between multiple margin rule regimes.