October, 2009
Korea Securities Depository
Contents
1. About KSD
2. Scope of Business
3. Corporate Action in Korea
1. About KSD
•
Established in 1974
•
Sole CSD in Korea under the related law
•
Member of ACG (Asia Pacific Central
Securities Depository Group)
•
Special membership of AECSD
Contents
1. About KSD
2. Scope of Business
3. Corporate Action in Korea
2. Scope of Business
•
Deposit & Settlement
•
Entitlements processing
•
Transfer agent / Bond Registrar
•
Value added business
–
International services
–
Securities Lending & Borrowing (SLB)
–
Fund Net Service
Scope of Business of KSD
KSD provides Consulting Service
Training Program
w/ KOICA
200 people Invited from 10 countries
Expert Dispatch
dispatch experts for on-site consultation
System
Implementation
SLB/Repo, Fund Settlement System
KSD
Foundation
e.g. SLB implementation to Thailand
Established in 2009
Education of finance and Economics
Support facilities and Equipment
Contents
1. about KSD
2. Scope of Business
3. Corporate Action in Korea
Corporate Actions in Korean Securities Market
What is Beneficial owner system?
Beneficial Owner
The people whose shares are deposited
in CSD and registered in CSD’s name.
Beneficial
Owner system
Advantage
One Example
20
Corporate Actions in Korean Securities Market
What is Beneficial owner system?
Beneficial
Owner
Beneficial
Owner
Beneficial
Owner
system
System
Advantage
1. One part of the securities depository
system
2. allows the beneficial owners to
have the status of shareholders
3. allows exercise their right against
the issuer
One Example
21
Corporate Actions in Korean Securities Market
A Part of the securities depository system
Stock Trades
Stock custody
Depository
System
Shareholder’s rights
Book-entry
system
Account book
Account book
Central Securities Depository
Beneficial
owner
system
Corporate Actions in Korean Securities Market
Operational structure
Registration
in the name of CSD
CSD
Issuer
Exercise of rights
for deposited shares
Efficient
Settlement
Secondary
Market
Enforced Liquidity
Corporate Actions in Korean Securities Market
What is Beneficial owner system?
Beneficial
Owner
Beneficial
Owner System
Advantage
Advantage
Simplify the complicate procedure
between CSD and issuer
One Example
21
Corporate Actions in Korean Securities Market
Simplify the complicate procedure
Before
After
Participant A
Issuing Co. A
(Transfer agent)
Participant A
Issuing Co. A
(Transfer agent)
Participant B
Issuing Co. B
(Transfer agent)
Participant B
Issuing Co. B
(Transfer agent)
Issuing Co. C
(Transfer agent)
Participant C
Issuing Co. C
(Transfer agent)
Participant C
24
Corporate Actions in Korean Securities Market
What is Beneficial owner system?
Beneficial
Owner
Beneficial
Owner System
Advantage
One Example
Example
One
Rights Exercising (Cash Dividends)
21
Corporate Actions in Korean Securities Market
Closing the shareholders’ book
 Request for beneficial
owners’ statement
Participants
KSD
Beneficial Owners’
Statement
 Submitting the
statement(D+3)
 Notification of
the record date or
the closing period
 Notification of the final
statement(D+6)
Beneficial Owners’
Book
 Notification of rights
- Corporate actions
Clients
Issuing Co.
26
Corporate Actions in Korean Securities Market
Rights Exercising : Cash Dividends
 Payment of
cash dividends
Participants
Fixing the statement
Of dividend payment
 Notification of
the final statement
 Crediting
the cash dividends
to the accounts
Notification of
dividend payment
schedule and
dividend notice
 Receiving
cash dividends
’ Notification of
dividend notice
Beneficial Owners
Issuing Co.
32
International Relations & Planning Team
Korea Securities Depository
Tel : 82-2-3774-3445
E-mail : [email protected]