KSD supports investment in foreign securities

Korea Securities Depository CEO Lee Byung-rhae

By Lee Kyung-min

The Korea Securities Depository (KSD) has launched a taskforce to support Koreans investing in foreign (currency) securities, the organization said, Monday.

The move comes amid a steady increase in the number of local investors putting their money into foreign securities over the past few years.

The taskforce set up Nov. 23 will draft a comprehensive roadmap on ways to improve “back-office” businesses including deposit, payment and the exercise of rights and protocols that follow foreign securities sales transactions.

An outside consultative body comprised of local securities firms and overseas depositories will be formed to help maintain objectivity of the taskforce management and the consultation.

In cooperation with well-established, reputable outside experts, the KSD will also provide consulting services to help them better understand risks associated with foreign securities.

The organization will review the roadmap drafted by the taskforce and come up with action plans to help determine the long term viability of the risk management methods.

CEO Lee Byung-rhae said the measures are part of broader efforts to help boost the profitability of local securities firms and help their profile on the global stage.

“KSD will make utmost efforts to help local firms through the consultations. Top, competent experts with extensive experience will be recruited with us to help provide service,” he said in a statement.

The foreign securities deposited at KSD jumped to $37.4 billion (42.2 trillion won) as of 2017 from $11.8 billion in 2013, more than triple that from four years earlier.

Of them, the foreign shares held by individual investors also spiked to $11.7 billion in 2017 from $3.6 billion, a near four-fold increase from four years earlier.