Lee Myung-ho Appointed President of Korea Securities Depository... "Efforts to Establish Electronic Securities System, Strengthen IT Capabilities, and Build Infrastructure"

[Asia Economy Reporter Oh Ju-yeon] Lee Myung-ho, the new president of Korea Securities Depository (KSD), officially began his duties on the 4th. In his inaugural speech, President Lee stated, "With the enforcement of the Electronic Securities Act, conditions have been created for KSD to transition into a 'market-based enterprise under a licensing system,'" adding, "I will do my utmost to gain the support and encouragement of the market and customers so that KSD can successfully transition into a market-based enterprise."

The inauguration ceremony was not held due to concerns over the novel coronavirus infection (Wuhan pneumonia).

Below is the full text of the inaugural speech.

Hello! Dear executives and employees! It is a great pleasure to meet you.

I consider it a great honor to be inaugurated as the 22nd president of Korea Securities Depository, a core institution of our country's capital market.

Until now, KSD has led the development of Korea's capital market with passionate enthusiasm and continuous innovation, and it is now recognized as the world's best Central Securities Depository (CSD) not only in Asia but also in the global market. I would like to express my deep respect and gratitude to former President Lee Byung-rae and all executives and employees who spared no sacrifice and effort to create the world-class KSD we have today.

Respected executives and employees of KSD! Recently, the financial industry to which our company belongs has been rapidly and drastically changing through the integration of innovative technologies such as blockchain and artificial intelligence (AI). No matter how excellent the technology or products we possess, if we become complacent even for a moment, we will inevitably be overtaken by numerous competitors. Especially now, as we must prepare for a successful transition to a market-based enterprise, KSD should not be led by market changes but must secure sustainable competitiveness that leads the market. Based on the experience and achievements of the past half-century, we must prepare for challenges and innovations in the next half-century. To this end, as president, I would like to share some directions for management that we will pursue together.

First, in the business sector, I will focus on the following matters.

First, I will do my best to ensure the stable establishment and activation of the electronic securities system. The transition from the securities deposit system to the 'electronic securities system' is not merely a change in the work environment. Since the electronic securities system fundamentally changes the basis of securities issuance and distribution based on digital technology, our company's responsibilities and roles have become even more significant. Even a very small mistake could threaten the foundation of our company's existence. Therefore, with the mindset of 'finding a needle in a haystack,' we will focus on the stable establishment of the electronic securities system through continuous system improvements and institutional refinements. In addition, we will actively strive to revitalize the electronic securities system by preparing various support measures so that unlisted companies can voluntarily participate in the electronic securities system.

Second, to enhance business stability, we will strengthen IT capabilities and actively respond to innovative technologies. By successfully completing the ongoing data center reconstruction project (October 2020), we will build an IT infrastructure with the highest stability and performance, and actively review and promote the business application of innovative technologies such as blockchain, big data, and RPA to further strengthen our business innovation capabilities. Along with this, we will secure new growth engines for the securities information business by building an integrated information system for structured finance and expanding securities information disclosure based on big data.

Third, we will further strengthen the core infrastructure functions of the asset management market. In preparation for the activation of cross-border fund trading following the implementation of the Asia Regional Fund Passport (ARFP) in May 2020, we will establish a cross-border fund subscription and redemption system and continuously strengthen the FundNet service by actively accommodating the needs of policy authorities and the market. We will also build an Innovation Enterprise Support Platform (VentureNet) to actively enhance the convenience of operations for innovative and startup companies and investors.

Fourth, to secure global competitiveness, we will strengthen our business capabilities in the global capital market. In response to the recent increase in demand for foreign currency securities investment, we will continuously promote improvements in foreign currency securities investment support processes, enhance information provision, improve related systems, and expand foreign currency securities lending services. Furthermore, through the expansion of Korean-style capital market infrastructure to developing countries and the successful hosting of the 24th ACG General Assembly (November 2020, Busan), we will elevate our status in the global market.

Fifth, we will lead the realization of social value through job creation and support for innovative startups. While striving to create jobs through active recruitment, expansion of new businesses, and discovery of customized jobs for vulnerable groups, we will support the co-growth of innovative startup companies through crowdfunding IR concerts, expansion of win-win finance projects, and the opening of the Busan co-working space. In addition, we will faithfully promote strengthening the clearing and settlement risk management system, rebuilding the electronic voting system, and advancing the securities financing risk management system.

In the management sector, I will focus on the following matters.

First, I will do my best for a successful transition to a market-based enterprise. Transitioning from a 'patent-based monopoly enterprise' to a 'market-based enterprise under a licensing system' does not happen automatically just because we want it. Moreover, the management environment surrounding us is not only full of 'opportunities' but also coexists with various 'risks,' making it difficult to establish future strategies. At times like this, our company must think carefully, clearly distinguish priorities, and execute faithfully. To this end, we will coldly analyze the management environment around us, communicate sufficiently with policy authorities to build consensus, and thoroughly prepare and promote the transition to a market-based enterprise to gain the support and encouragement of the market and customers.

Second, we will strengthen customer satisfaction management. Customers are strict supervisors and strong supporters of our company; they are the starting point and goal of management. Just as water is necessary to reach the sea, we will always communicate and empathize with customers humbly and continuously, improving customer service so that customers and our company can coexist and develop together.

Third, we will strive to create a "healthy organizational culture that is good to work in." We will ensure that through fair competition, employees can achieve results proportional to their efforts and be rewarded accordingly. Also, to actively respond to internal and external environmental changes and strengthen the organization's human capabilities, we will reestablish a future talent development system and build a rational personnel management system.

Fourth, we will achieve "organizational integration through sincere consideration." What we must do now is for all executives and employees to communicate based on mutual trust and create a better tomorrow for our company. If there have been unnecessary divisions and conflicts, we must sincerely reconcile and transform them into the energy of integration and look toward tomorrow together. Also, with the labor union representing employees, we must establish a sound labor-management relationship based on mutual respect and trust.

As president, I will first communicate with a humble attitude and listen with an open mind. I sincerely hope that all executives and employees will unite their hearts so that the history of our capital market, which we will write together, can move toward a better future.

Dear executives and employees!

Let us challenge ourselves once again! Let us critically review ourselves, quickly correct what is wrong, and further develop what is good to create a new future for our capital market together. I believe in you! I know well that you have the strength and resilience to wisely overcome numerous difficulties to bring KSD to where it is today.

I am confident that if we combine all our strength and wisdom, we can overcome any obstacle.

As the president of Korea Securities Depository, I will always listen carefully to your valuable opinions and approach with a learning attitude through communication even in small matters. I will also actively support you so that your capabilities and potential can be fully realized.

Once again, I am very pleased to have this precious opportunity to create a new history of our capital market together with you, and I wish you and your families health and happiness. Thank you.

This content was produced with the assistance of AI translation services.