Korea Securities Depository is the

central securities depository A central securities depository (CSD) is a specialized financial organization holding securities like shares, either in certificated or uncertificated ( dematerialized) form, allowing ownership to be easily transferred through a book entry rather t ...

(CSD) of Korea, providing central custody of securities,

book-entry Book entry is a system of tracking ownership of securities where no certificate is given to investors. Several terms are often used interchangeably with "book entry" shares including "paperless shares", "electronic shares", "digital shares", "digi ...

transfer, and

settlement Settlement may refer to: *Human settlement, a community where people live *Settlement (structural), the distortion or disruption of parts of a building *Closing (real estate), the final step in executing a real estate transaction *Settlement (fina ...

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 ActArticle 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.). It is a non-classified public institution under the

Financial Services Commission (South Korea) The Financial Services Commission (FSC), formerly Financial Supervisory Commission, is South Korean government's top financial regulator. It makes financial policies, and directs the Financial Supervisory Service. The Financial Supervisory Comm ...

. 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. On February 9, 2010, with the enforcement of the Capital Market and Financial Investment Business Act, the name was changed to Korea Securities Depository(KSD).

References

External links

www.ksd.or.kr/eng
{{authority control Finance in South Korea Government agencies of South Korea Central securities depositories