KSD chief vows successful launch of e-securities system

Korea Securities Depository (KSD) CEO Lee Byung-rhae speaks at a press meeting on Yeouido, Seoul, Aug. 27. Courtesy of KSD

By Lee Kyung-min

Korea Securities Depository (KSD) CEO Lee Byung-rhae said Tuesday that he will ensure an effective and safe implementation of an electronic securities (e-securities) system before his three-year term ends in December 2019.

“We established a taskforce in August 2016 and came up with a roadmap for the full implementation of the system in September 2019," Lee said at a press meeting on Yeouido, Seoul, Aug. 27.

"We will make sure the system will run fully without failures, a very attainable goal following trial runs over the past few months,” he added.

Under the system scheduled to begin Sept. 16, securities certificates of shares and bonds will no longer be issued in physical form, thereby recording buyers' subsequent rights on an electronic register.

This will allow investors to acquire, transfer and exercise the rights electronically.

As of Aug. 23, 99.4 percent of the stocks listed on the local bourse have been recorded on an electronic register.

Of the non-listed stocks, 82.1 percent are recorded electronically, and the KSD plans to boost cooperation to have the remaining 17.9 percent recorded on the electronic register.

“The full implementation of electronic securities will help advance Korea's financial market and eliminate risks that long accompanied the use of physical securities. We have put our utmost efforts to run the system without failures or technical glitches,” he said.

Lee also vowed to raise the profile of Korea's financial system by successfully hosting the 24th annual meeting of the Asia-Pacific Central Securities Depository Group (ACG) in Busan in 2020.

The KSD will also improve “back-office” businesses including deposits, payments and the exercising of rights and protocols that follow foreign securities sales transactions.

“We will also provide consulting services to help them better understand the risks associated with foreign securities,” Lee said.