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Kobo uses pool.ntp.org and that's usually smart enough to give you a random ntp server in your area. (When I tried, I got three servers in Germany and one in Belgium which is still reasonably close to home.)
ntpd doesn't run all the time, only when wifi comes up. It's run with the -q option (Quit after clock is set) probably because the Kobo isn't an always-online device. However, in this mode, ntpd is unable to correct any clock skew issues.
It either just works, or we don't notice because everytime Kobo wakes from standby, the very first thing it does is enable wifi and sync clock. Unless you disabled wifi entirely, or running something other than nickel.
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