Korea Securities Depository (KSD)
Brief Introduction
This Memorandum of Understanding between Central securities Depository of Iran and Korea Securities Depository (KSD) was signed by CSDI Chief Executive Officer, Hamed Soltani Nejad and the KSD's CEO Kyung Dong Kim during the latter official visit to Tehran on September 15, 2013.
Objectives
- Advancement and expansion of financial services in both countries
- Exchange of Information
- Developing new services and systems
- Establishing links in CSD operations
- Exchange of Personnel and knowledge
An Introduction to Korea Securities Depository (KSD)
Korea Securities Depository (KSD) is the central securities depository (CSD) of Korea, serves the purpose of supporting the development of the capital market by providing a wide range of securities services including the issuance and distribution of securities.
KSD was established in 1974 as a special corporation of a public nature (Article 294, Financial Investment Services and Capital Markets Act). The participants of KSD comprise financial institutions including securities companies, banks, insurance companies and foreign investors.
We have securities worth nearly KRW 4,000 trillion deposited with our system and effectively handle the settlement of trades, in addition to expanding our service areas to create shared values in the capital market.
Since KSD has direct impact on the market, there are several mechanisms to ensure the fairness and transparency of its activities, and KSD is supervised by regulatory bodies such as the Financial Supervisory Commission and Financial Supervisory Service
Joint Projects
- International Seminar on Market Linkage at CSDI
The first International Market Linkage Seminar was held in May 2013 at the headquarters of CSDI Company in Tehran. The conference was attended by senior executives from several Asian countries' capital markets, including post-trade directors of South Korea, Pakistan, Indonesia and several board members of the Asia-Pacific CSD Group (ACG). Mr. Yong Ho Park, who was the Director of Investment Services at KSD, represented his company at the conference.
1. 1st joint workshop: The workshop, hosted by KSD in Seoul in April 2014, was attended by representatives from CSDI.
2. 2nd workshop: Hosted by CSDI, the workshop was held in September 2014 in Tehran. A 6-member delegation consisting of senior KSD managers during their working visit to Iran attended the workshop, while separately paying visits to the Tehran Stock Exchange, Iran FaraBourse and Iran Mercantile Exchange. Familiarity with the Iranian capital market and its structure, the structure of depository and settlement operations in Iran Energy Exchange, risk management, settlement models, legal infrastructure of the Iranian capital market, corporate actions and CSDI’s international business activities were the major subjects discussed in the workshop.
3. 3rd workshop: This workshop was held in April 2015 at the level of two companies’ CEOs in Seoul during which it was decided to form a special working group to connect the Iranian and the South Korean capital markets. CSDI official Hossein Mohammadi and his KSD counterpart Yong Ho Park took responsibility for forming this working group on behalf of their respective companies.
With the approach of developing bilateral cooperation, the meeting was hosted by the Central Depository Company on Kish Island in October 2016. The meeting’s main objective was to introduce and elucidate a specific model for making it possible for South Korean investors to invest in the Iranian capital market by purchasing Islamic treasury securities, locally known as Akhza.
- Iran Capital Market High-Ranking Delegation Visits South Korean Market
A high-ranking delegation comprised of representatives from the Iranian capital market including the President of Securities and Exchange Organization, Dr. Mohammad Fatantfard, the CEO of CSDI Company, Dr. Mohammad Reza Mohseni, the SEO’s Executive Vice President, Mohammad Reza Sheikh Al-Molouki, the CEO of Tehran Securities Exchange Technology Management Company, Dr. Analoi, and the SEO Vice President for International Affairs, Bahador Bijani traveled to Seoul after the implementation of the Joint Comprehensive Plan of Action (JCPOA) in March 2016. During this trip, a memorandum of understanding was signed between Iran’s SEO and the South Korean KRX company to expand joint activities. This MoU involved various initiatives to establish linkage between the two countries’ capital markets and increase bilateral activities.
Central Securities Depository of Iran has been a member of the Asia-Pacific Central Securities Depository Group (ACG) since 2012 and has been a board member in this group since 2016. South Korea Securities Depository Company is also an ACG board member, the fact that paved the way for joint cooperation between the two companies in various areas, especially the exchange of knowledge and experience and the promotion of multilateral cooperation between the member companies. Also, CSDI and KSD as co-members of the ACG’s "New Business Initiative" working group started cooperation to share the latest innovations and diversification measures in the business area by members of the working group.
KSD and CSDI, as the ACG Chairman and Vice President, represented the grouping at the WFC board members in 2019, working together to improve technical and executive knowledge on areas of interest, as well as the global development of the CSD industry.
- Cooperation on Standardization of Mutual Fund Pre/Post-trade Operations
CSDI and KSD are working jointly on the project of standardization of pre- and post-trade procedures for settlement operations of mutual funds, as well as on facilitating cross-border transactions related to the financial instrument in thirteen member countries of Asia Fund Standardization Forum (AFSF).
