Revolutionizing the Financial Market with Token Securities and Treasury Bonds

Lee Soon-ho, CEO of Korea Securities Depository (KSD), has announced ambitious plans to enhance the trading of token securities (STO) and electronic general meetings of shareholders, aiming to create a stable environment for treasury bond investments. With the anticipated inclusion in the World Government Bond Index (WGBI) in November, KSD is also preparing to support collateral transactions for foreign investors.

Launching a Testbed for Token Securities

In June 2025, KSD plans to launch a testbed platform for the comprehensive management of token securities, following the Financial Services Commission's decision to integrate STO into the institutional framework. This initiative aims to ensure equal management of issuance and distribution volumes for investor protection, with a shift to an operation environment aligned with the amended Electronic Securities Act and Capital Markets Act.

Enhancing Treasury Bond Accessibility and Liquidity

KSD aims to establish a system by July 2025 that allows mid-term redemption in the individual investor treasury bond market, significantly enhancing liquidity and accessibility. With the release of 5-year bonds this month, following last year's 20-year and 10-year bonds, KSD is committed to improving related laws and systems to promote the activation of the treasury bond integrated account.

Developing a Platform for Electronic General Meetings

In preparation for the Commercial Act amendment, KSD is developing a platform to facilitate electronic general meetings, supporting all processes related to exercising voting rights. Despite the amendment's hold due to a lack of bipartisan agreement, KSD plans to engage with institutional investors to increase the electronic voting rate.

Preparing for WGBI Inclusion

In anticipation of Korea's inclusion in the WGBI, KSD is implementing measures to support collateral transactions for foreign investors and distribute a guidebook for users of the treasury bond integrated account. KSD is also focusing on promoting the use of the electronic securities system, revamping the securities settlement system, and enhancing the securities information management system.

Commitment to Digital Transformation

Lee Soon-ho emphasizes the importance of digital transformation and AI in advancing the financial market, with a focus on developing the next-generation computing system, the 'KSD Innovative Financial Platform,' to enhance internal work efficiency.