Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
Korea Securities Depository expands non-face-to-face shareholder services
Korea Securities Depository's (KSD) Seoul office / Courtesy of KSD
By Lee Hyo-jin
Korea Securities Depository (KSD) is expanding non-face-to-face shareholder services, allowing retail investors to recover unclaimed stock-related assets online, the securities settlement agency said Tuesday.
Through its website, shareholders can apply online to receive small-value unclaimed shares and payments that previously required in-person visits and paper documentation.
The service covers stock dividends and bonus shares left undistributed because shareholders were unaware of them, as well as unpaid dividends that went uncollected following address changes or missed notifications.
Under the system, users can apply via smartphone to receive unclaimed shares valued at up to 5 million won ($3,300) and unpaid balances of up to 1 million won after completing identity verification procedures, including mobile authentication, ID verification and bank account confirmation.
The services are available only for companies that appoint KSD as their transfer agent, the agency noted.
The development comes as Korea's financial sector pushes to digitalize investor services and reduce paper-based administrative work.
Since 2022, the depository has been providing non-face-to-face service for clients, both listed and unlisted firms, as well as individual shareholders, to enhance convenience.
KSD said the digital platform was designed to reduce inconvenience for shareholders while promoting paperless administrative processes as part of its environmental, social and governance initiatives.
The depository added that the online services improve accessibility for retail investors who may have difficulty visiting offices in person.
"We will continue working to provide faster and more convenient securities transfer agency services for both companies and shareholders," the depository said in a statement.
KSD, headquartered in Busan, provides clearing, settlement and securities custody services for Korea's capital markets and also handles shareholder registry and transfer agency services for listed and unlisted firms.