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KSD – Past, Present & Future. October 5, 2005. Myeong-Hoon Lee Managing Director Korea Securities Depository. KSD – Past History and Timeline From Humble Beginnings To Prosperous Future KSD – Present Core and Value-added Services
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KSD – Past, Present & Future October 5, 2005 Myeong-Hoon Lee Managing Director Korea Securities Depository
KSD – Past History and Timeline From Humble Beginnings To Prosperous Future KSD – Present Core and Value-added Services From Serving the Domestic Market to Serving the International Market KSD – Future Hub of Securities Market in Korea Ubiquitous & Convergent Securities Service Administrator Outline
Initial Phase (1974-1993) • KSSC Established • Centralized Deposit • Beneficiary • shareholder • system introduced KSD – History and Timeline Mature Phase (2000-2005) Growth Phase (1994-1999) • FundNet launching • Intl. Consulting & • Infra Export • IT Back-up Center • KSD reborn on SEA • International Services • OTC Bond DVP • settlement • SLB, Repo, etc.
Deposit Collateral Management International Services Other Services Primary Market Settlement KSD –Roles & Functions
KSD – Core Services Deposit • Blanket Deposit • Corporate Action Services based on Centralized Deposit • Indirect Investment Asset Deposit through FundNet • New Derivatives and Short-term Financial Instruments Deposit Settlement • Securities Settlement Services for Market Transactions (KRX) • OTC Bond Settlement on a DVP basis by linking with BOK • Institutional Settlement Services for Institutional Investors • Settlement Services for Free Board • Indirect Investment Asset Settlement through FundNet
Intl. Services • Cross-border Securities Deposit & Settlement Services • Custody of DR Underlying Shares/ Local Custody/ CB, BW, EB Collateral Magt. • Securities Lending and Borrowing Intermediary Service • Repo/ Covered Call/ OTC Derivatives Primary Market • Transfer Agent Services (title transfer, stock issuance, notification) • Bond Registration Service (registration, transfer of bonds, pledging) Other Services • Domestic and International Consulting Services • Information Provision Service KSD – Other Services
KSD –International Cooperation • International Business Cooperation • Business Agreement with JSSC (Japan) - Dual listing between Korean and Japanese Market • SLB & Repo Project with SET/TSD (Thailand) - Dispatched 7 SLB, Repo, and IT experts to Thailand * First Infrastructure Export to a Foreign Market • International Consulting Services • Expert dispatch, Invitational training, etc. • Beneficiary States - Uzbekistan, Vietnam, Indonesia, the Philippines, etc.
Domestic Front Introduction of Electronic Securities System Establishment of Electronic Voting System International Front Full support to the Asia Bond Market Initiative (ABMI) CSD Linkage to facilitate global listing KSD – Future Plan
Vision for Domestic Market Hub of Securities Market in Korea Hub of Securities Information Ubiquitous & Convergent Securities Service Provider Vision for International Market Hub of Northeast Asia Securities Market Major Contributor to Global Market - CSD9(2007) KSD – Future Vision