KSD returns unclaimed stock to owners

By Kim Tae-jong

Kim Dong-il, a 70-year-old man living in Nayangju, Gyeonggi Province, recently received a surprise “present” of 660 shares worth about 30 million won.

He recently realized that he was entitled to 30 million won in unclaimed stock that he originally acquired from his former company 17 years ago as the Korea Securities Depository (KSD) helped him track down his shares.

In 1995, he received 66 shares of Dongbu Fire and Marine Insurance when he retired. The original face value was 5,000 won but has soared to about 45,000 won and the number of shares also increased ten times after the company’s stock split at face value in 1999.

The stocks would have been dormant for good without the KSD’s campaign to track down shareholders and inheritors that rightfully own unclaimed shares.

In August, there were about 23,000 shareholders and inheritors like Kim, eligible for stock worth 155.8 billion won, according to the KSD.

The KSD has been searching for people entitled to the unclaimed shares with related organizations including the Financial Supervisory Service and the Ministry of Public Administration and Security, and has conducted an annual campaign.

For three years alone, between 2009 and 2011, the KSD returned 622.4 billion won of stock to the rightful owners through such efforts.

This year, the depository began a campaign on Sept. 3 and has already notified 640 people they own shares worth 8.75 billion won as of Sept. 17.

“Unclaimed stocks have continued on an upward spiral when many companies have gone through mergers and acquisitions, restructuring and name changes over the past dozen years,” an KSD official said.

Such shares are then managed by the KSD and commercial banks until the owners are found.

But the official said people can claim such shares whenever they want.

“The campaign is a more active way to track down the owners of unclaimed stocks,” the official said. “People can check if they may have unclaimed shares anytime.”

They can find more information on how to claim such shares at the KSD’s official website at www.ksd.or.kr or call 02-3774-3600.

“But some stocks can be managed by transfer agency service providers Hana Bank and KB Kookmin Bank, depending on the types of shares. So it is advised to visit there first,” he added.