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Korea Securities Depository

KSD's Role in the Issuer's Corporate Actions in Korean Securities Market. October, 2009. Korea Securities Depository. Contents. About KSD Scope of Business Corporate Action in Korea. Established in 1974 Sole CSD in Korea under the related law

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Korea Securities Depository

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  1. KSD's Role in the Issuer's Corporate Actions in Korean Securities Market October, 2009 Korea Securities Depository

  2. Contents About KSD Scope of Business Corporate Action in Korea

  3. Established in 1974 Sole CSD in Korea under the related law Member of ACG (Asia Pacific Central Securities Depository Group) Special membership of AECSD 1. About KSD

  4. Contents About KSD Scope of Business Corporate Action in Korea

  5. Deposit & Settlement Entitlements processing Transfer agent / Bond Registrar Value added business International services Securities Lending & Borrowing (SLB) Fund Net Service 2. Scope of Business

  6. Scope of Business of KSD KSD provides Consulting Service Training Program w/ KOICA 200 people Invited from 10 countries Expert Dispatch dispatch experts for on-site consultation System Implementation SLB/Repo, Fund Settlement System e.g. SLB implementation to Thailand Established in 2009 Education of finance and Economics Support facilities and Equipment KSD Foundation

  7. Contents about KSD Scope of Business Corporate Action in Korea

  8. Corporate Actions in Korean Securities Market What is Beneficial owner system? Beneficial Owner The people whose shares are deposited in CSD and registered in CSD’s name. Beneficial Owner system Advantage One Example 20

  9. Corporate Actions in Korean Securities Market What is Beneficial owner system? Beneficial Owner Beneficial Owner system Beneficial Owner System One part of the securities depository system allows the beneficial owners to have the status of shareholders allows exercise their right against the issuer Advantage One Example 21

  10. Stock Trades Shareholder’s rights Stock custody Depository System Book-entry system Beneficial owner system Central Securities Depository Account book Account book Corporate Actions in Korean Securities Market A Part of the securities depository system

  11. Registration in the name of CSD CSD Issuer Exercise of rights for deposited shares Secondary Market Efficient Settlement Enforced Liquidity Corporate Actions in Korean Securities Market Operational structure

  12. Corporate Actions in Korean Securities Market What is Beneficial owner system? Beneficial Owner Beneficial Owner System Advantage Advantage Simplify the complicate procedure between CSD and issuer One Example 21

  13. Corporate Actions in Korean Securities Market Participant A Participant C Participant B Participant B Participant C Participant A Issuing Co. C (Transfer agent) Issuing Co. B (Transfer agent) Issuing Co. A (Transfer agent) Issuing Co. C (Transfer agent) Issuing Co. A (Transfer agent) Issuing Co. B (Transfer agent) Simplify the complicate procedure Before After 24

  14. Corporate Actions in Korean Securities Market What is Beneficial owner system? Beneficial Owner Beneficial Owner System Advantage One Example One Example Rights Exercising (Cash Dividends) 21

  15. Corporate Actions in Korean Securities Market Beneficial Owners’ Statement KSD Closing the shareholders’ book • Request for beneficial owners’ statement  Submitting the statement(D+3) Participants  Notification of the record date or the closing period  Notification of the final statement(D+6) Beneficial Owners’ Book  Notification of rights - Corporate actions Clients Issuing Co. 26

  16. Corporate Actions in Korean Securities Market Participants Rights Exercising : Cash Dividends • Payment of cash dividends Fixing the statement Of dividend payment • Notification of the final statement  Crediting the cash dividends to the accounts Notification of dividend payment schedule and dividend notice • Receiving cash dividends ’ Notification of dividend notice Beneficial Owners Issuing Co. 32

  17. International Relations & Planning Team Korea Securities Depository Tel : 82-2-3774-3445 E-mail : jinily@ksd.or.kr

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