Transcript KSD Overview

KSD – Past, Present & Future
October 5, 2005
Myeong-Hoon Lee
Managing Director
Korea Securities Depository
Outline

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

2
KSD – History and Timeline
Mature Phase
Growth Phase
Initial Phase
(1974-1993)
• KSSC Established
• Centralized Deposit
• Beneficiary
shareholder
system introduced
(2000-2005)
(1994-1999)
• FundNet launching
• Intl. Consulting &
• KSD reborn on SEA
Infra Export
• International Services • IT Back-up Center
• OTC Bond DVP
settlement
• SLB, Repo, etc.
3
KSD –Roles & Functions
Deposit
Collateral
Management
International
Services
Other
Services
Primary
Market
Settlement
4
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
5
KSD – Other Services
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
6
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.
7
KSD – Future Plan

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
8
KSD – Future Vision

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)
9
Thank You