South Korea's stock exchange will introduce an electronic securities system next week, under which all listed stocks and bonds do not exist in paper form, according to the country's financial regulator.
Under the new system, which will go into effect Monday, securities certificates of listed stocks and bonds are required to be recorded on an electronic register, the Financial Services Commission (FSC) said.
|The Korea Exchange's building in Seoul (Yonhap)|
The new system will allow investors to acquire, transfer and exercise subsequent rights electronically, the FSC said.
The introduction of an electronic securities system is expected to save costs of issuing securities, reduce risks in securities circulation, and enhance transparency in corporate governance and securities transactions, the regulator said.
Nearly all kinds of securities, except commercial papers and investment contract securities, will be subject to the paperless system, it said.
The Korea Securities Depository Corp. will be in charge of monitoring the process of electronic issuance and circulation, the FSC said. (Yonhap)
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