Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
KSD fully ready for electronics securities era
The Korea Securities Depository building in Seoul. / Korea Times file
By Kim Bo-eun
The Korea Securities Depository is preparing for the introduction of an electronic securities system on Sept. 16.
Under the system, the issuance, circulation and corporate action associated with securities will be processed electronically.
The law on electronic securities was established in March 2016.
Physical securities certificates for shares and bonds will lose validity when the electronic system is introduced on Sept. 16.
Therefore, holders of physical securities certificates need to visit a securities firm to make deposits by Aug. 21. They will need ID, the securities certificates and the securities firm account to be under their name.
If shareholders fail to deposit their securities by the deadline, they need to visit the Korea Securities Depository, KB Kookmin Bank or KEB Hana Bank.
Securities issuers that have to switch to electronic securities need to notify holders of physical securities that these will lose validity when the new system is implemented and that they will need to visit the issuer to notify of the electronic account and submit their securities certificate.
The notification should be made at least once between June 25 and Aug. 12.
Issuers must also revise their articles of association to reflect the changes.
If these are not updated, securities issuers will have to submit revisions to be able to electronically register shares after the new system is implemented.
The new system is expected to improve efficiency and transparency of the capital market and enable further growth.
Investors will be able to trade and manage securities in a safer manner, as risks arising from the circulation of physical securities, including counterfeiting, robbery and loss, will be removed.
They will also be able to receive information on the issuing and circulation of securities faster through the electronic system.
For issuers, stock issuance procedures will be streamlined and financing costs reduced. A total of 87 billion won is expected to be saved in the first five years.