KSD and NH Nonghyup Bank Sign Agreement on Digital Finance Innovation for Venture Fund Back Office

(From left) Lee Myung-ho, President of Korea Securities Depository, Kwon Joon-hak, President of NH Nonghyup Bank.

[Asia Economy Reporter Lee Seon-ae] The Korea Securities Depository (KSD) announced on the 7th that it has signed an agreement with NH Nonghyup Bank on the "Digital Finance Innovation for Venture Fund Back Office."

The agreement aims to promote digital innovation in venture fund back office operations by linking the VentureNet system being developed by KSD with the next-generation securities custody system being pursued by NH Nonghyup Bank. The main contents include △ simultaneous launch of the VentureNet system and NH Securities Custody next-generation system in October △ promotion to activate the use of both institutions' systems △ cooperation in developing digital finance infrastructure to continuously support the revitalization of venture capital.

While the venture investment market is preparing for a second leap forward following the enforcement of the Act on the Promotion of Venture Investment, the back office operations for managing investment assets in this market still rely on inefficient means such as FAX, email, mail, and courier services. To take the venture investment market to the next level, a convenient and secure back office system suitable for the expanded scale of venture investment is necessary.

To this end, KSD plans to open the "VentureNet system," a venture investment operation support platform, based on the know-how of the FundNet system, which has been stably operated in the asset management market for over 16 years. NH Nonghyup Bank is building a next-generation securities custody system aimed at digital finance innovation, including linking with VentureNet, private fund risk management, and expanding mobile channels.

Through cooperation between the two institutions under this agreement, inefficiencies in venture investment back office operations are expected to be improved, operational risks caused by manual work and non-standardization reduced, and industry trust enhanced.

Lee Myung-ho, President of Korea Securities Depository, said, "Through this business agreement, we will set a new milestone in venture investment asset management operations by digitalizing the back office of the venture investment market together with the venture fund custodian bank."

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