Korea Securities Depository is the central securities depository (CSD) of Korea,providing central custody of securities,book-entry transfer,and settlement 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 Act[1]). It is a non-classified public institution under the Financial Services Commission (South Korea).
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).
↑ Article 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.
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