Korea Securities Depository

Korea Securities Depository
Native name
한국예탁결제원
Central securities depository
Founded 6 December 1974
Headquarters 40 Munhyeongeumyung-ro, Nam-gu
Busan
, South Korea
Number of locations
Busan, Seoul and Ilsan
2 branches
Hong Kong office
Key people
Lee Byungrhae (Chairman & CEO)
Website www.ksd.or.kr/eng
Korea Securities Depository
Hangul 한국예탁결제
Hanja 韓國預託決濟
Revised Romanization Hangung Yetang Gyeoljewon
McCune–Reischauer Han'gung Yet'ang Kyŏlchewŏn

Korea Securities Depository is the central securities depository (CSD) of Korea, providing central custody of securities, book-entry transfer, and settlement of securities transactions. KSD was established in December 6, 1974, under the Securities and Exchange Act (later consolidated into the Financial Investment Services and Capital Markets Act[1]). It is a non-classified public institution under the Financial Services Commission (South Korea).

As of 2014, KSD held in custody securities valued at KRW 3,149 trillion, and processes a daily average of KRW 70 trillion in securities related cash.

History

The rapid growth of the Korean securities market in the 1970s called for an efficient facility for the custody and settlement of securities. The 5th amendment the Securities and Exchange Act (SEA) on February 6, 1973 provided the legal grounds to implement a CSD system, and on December 6, 1974, the Korea Securities Settlement Corporation (KSSC) was established. On April 25, 1994, KSSC was re-incorporated as Korea Securities Depository (KSD), a special public corporation pursuant to the 11th amendment to the SEA (December 17, 1993). The amendment also provided a legal basis for KSD to act as the sole CSD of Korea.

References

  1. Article 294 (Establishment) (1) The Korea Securities Depository shall be established in order to promote a centralized deposit of securities, etc. (referring to securities and others prescribed by Presidential Decree; hereafter in this Chapter, the same shall apply), transfer of securities between accounts, and settlement subsequent to transactions and smooth circulation.
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