Korea Securities Depository Makes Next-Generation IT, Tokenized Securities Units Permanent in Overhaul

Korea Securities Depository has overhauled its organization and carried out a personnel reshuffle to strengthen the stability of capital-market infrastructure and respond to digital transformation. It made permanent the units handling its next-generation system, tokenized securities and electronic shareholder meetings.

The depository said July 3 that it reorganized its structure to respond to changes in the capital-markets environment and enhance the function and stability of core infrastructure. It merged units with overlapping functions while keeping its overall structure unchanged at eight headquarters and 32 departments.

It created a new Growth Innovation Office under the Strategy Planning Headquarters. The office will devise response strategies for the expansion of digital markets and work to improve internal operations and client-facing services using AI. It will also be responsible for identifying new businesses, redesigning the organizational structure, and reviewing performance evaluation and personnel management systems.

The organizations for tokenized securities and electronic shareholder meetings were converted into permanent units. Korea Securities Depository said it made the platform development organizations standing bodies in preparation for the planned 2027 launch of the tokenized-securities and electronic shareholder meeting systems. The Tokenized Securities Department will review the construction of a total-volume management platform for tokenized securities and ways to accommodate the tokenization of conventional securities. The Electronic Voting Rights Department plans to build an electronic shareholder meeting platform in the third quarter and conduct integrated testing with listed companies in the fourth quarter. It will also review ways to enable foreign investors to use electronic voting.

The Next-Generation System Task Force was renamed the IT Development Headquarters. That unit will lead development of a next-generation innovative financial platform. Korea Securities Depository also expanded its IT organization into the IT Planning Headquarters and the IT Development Headquarters, placing both at the front of the formal organizational hierarchy.

The depository also expanded and reorganized the functions of its securities data organization. Korea Securities Depository holds issuance details and rights information for stocks, bonds, funds and derivative-linked securities. It also manages securities lending and borrowing transaction data for stocks and bonds, as well as international transaction data for overseas stocks. It plans to strengthen its role as a capital-market data hub.

The division of responsibilities among executives was also adjusted. The executive vice president will oversee the Strategy Planning Headquarters and the Management Administration Headquarters. A standing director will supervise the IT Planning Headquarters and the IT Development Headquarters. Four front-line business headquarters — Electronic Registration, Clearing and Settlement, Investment Support, and Global — will be overseen directly by the president.

Several organizational names were also changed. The ESG Strategy Headquarters was renamed the Strategy Planning Headquarters, and the Management Support Headquarters became the Management Administration Headquarters. The Innovative Finance Office was reorganized into the Tokenized Securities Department, while the Electronic Registration Operations Department was renamed the Electronic Registration Department. The Securities Lending Department and the Securities Collateral Department were merged into the Lending and Collateral Department. The LEI and Crowdfunding Team became the Securities Data Management Team, and the Office Environment Improvement Task Unit was renamed the Facilities Improvement Team.

In the personnel reshuffle, Kim Min-soo, head of the Management Support Headquarters, was promoted internally to executive vice president. Baek Sang-tae, head of the Global Headquarters, was transferred to lead the Strategy Planning Headquarters. Kwon Eui-jin, head of the ESG Strategy Headquarters, was appointed head of the Global Headquarters. Newly appointed executive Lee Seung-kwon will lead the Management Administration Headquarters.

The reshuffle also covered department heads and team leaders. Of 35 department-head positions, 18 were changed, including six promotions and 12 transfers. Of 112 team-leader positions, 28 were changed, including eight promotions and 20 transfers.

President Lee Yoon-su said Korea Securities Depository would maintain the stability of core capital-market infrastructure while actively pursuing innovation. The institution aims to become a data hub and technology center for the capital market and fulfill its responsibility as an infrastructure provider that allows market participants to trade with confidence, he added.

Han Gyeong-woo, Hankyung.com reporter case@hankyung.com