Each trade is settled on a real time basis for payments and delivery of products, and trading participants confirm the progress of settlement via KRX system.
A participant, before submitting an order, makes payment of KRW 1.5 million per 20,000 liters as the good faith money into a payment account (a virtual account notified at the time approval for market participation.) Any portion of the good faith money for the trades that have not been executed is refunded.
The Exchange notifies the results of trade execution to the seller and the buyer through the order input program. In the case of “on arrival”, a buyer needs to input the delivery charges that have been calculated according to the pricing table posted on the order input program within one hour after trade execution.
The buyer needs to make payment of settlement amount into the payment account within one hour after inputting the delivery charges (after trade execution in the case of “on shipping”
The buyer, in discussion with the seller, needs to input the time and date for delivery by 22:00 of the trading day through the order input program. The time and date for delivery can be chosen from the range between the point of time for payment on the trading day and 22:00 of the next trading day.
The seller, after confirming through the order input program the payment of settlement amount by the buyer, delivers petroleum products within two hours from the agreed time and date for delivery.
The buyer, upon receiving the petroleum products, clicks the delivery confirmation button in the order input program and then input the date and time of actual delivery.
After the buyer confirms the delivery, the KRX transfers the payment of settlement amount to the seller, completing all the procedures for transactions.