3 Years Since Electronic Securities System Implementation... Registered Assets and Issuing Companies Up 21% and 29%

"Promoting the Use of Electronic Securities System for Unlisted Companies"

[Asia Economy Reporter Minji Lee] The Korea Securities Depository (KSD) announced that it has smoothly landed in the electronic securities system market, with custodian assets and issuing companies showing a stable upward trend.

According to KSD data on the 16th, as of the 31st of last month, the custodian assets under electronic registration amounted to 5,782 trillion won, an increase of 1,002 trillion won (21%) compared to the launch date (4,780 trillion won). The number of issuing companies using the electronic securities system was counted at 3,099, up 698 companies (29.1%) from the launch date (2,401 companies).

The number of companies that applied for quarterly owner statement preparation was 1,245, with 2,783 cases prepared, increasing by 24.6% and 28.6% respectively compared to the previous year. Previously, the preparation of beneficial shareholder statements was only possible when there was a record date related to exercising rights, but after the implementation of the electronic securities system, owner statements can be prepared on a quarterly basis.

The KSD stated, “Since the implementation of the electronic securities system on September 16, 2019, custodian assets and issuing companies have steadily increased, establishing the system successfully,” and added, “We will strive to promote the use of the electronic securities system among unlisted companies.”

The number of unlisted companies participating in the electronic securities system was 575, with a participation rate of 18.4%, a 4% increase compared to the launch date. The cumulative number of participating companies, including those converted to listed companies, reached 932. Unlike general companies, unlisted companies can participate in the electronic securities system upon application.

The KSD plans to continue encouraging unlisted companies to participate in the electronic securities system. Until 2024, it will offer exemptions on stock issuance registration fees and a 20% discount on basic securities agency fees, and will produce and distribute an expanded brochure to enhance understanding of the system and guide the conversion process for unlisted companies that have not yet converted to electronic securities.

Furthermore, the KSD plans to increase user satisfaction by conducting surveys to collect opinions from unlisted companies and identify areas for improvement in the system and services.

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