An electronic securities system is to be introduced on September 16th. It is a system that registers and issues shares in the electronic method without publishing real securities.
|The Introduction of Electronic Securities System|
The Korea Securities Depository (KSD) decided to adopt this system because of the drawbacks of the former physical securities. People using the former system can be at risk from counterfeiting, falsification, tax evasion, and unlawful transactions, and a lot of money is spent on issuing and distribution. The electronic securities system is expected to reduce spending by about 181 billion won as well as time spent in the stock business. It also ensures safe transactions through the real-name financial transaction system. Listed securities, collective investment securities, Korean Depositary Receipt (KDR), and derivative linked securities are changed and issued in electronic securities according to this new system. Unlisted stocks can be switched to electronic securities if publishing companies request their stocks to be registered electronically. Investors who have physical securities must deposit stocks because they can be restricted in exercising their rights.
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