Standing Proxy Service for Foreign Investors
As a standing proxy for foreign investors, KSD provides services including investment registration, account opening, and settlement, handles bonus issues and paid-in capital increase, processes dividend and interest and principal payments, and exercises voting rights.
Procedures for using standing proxy service
- Signing a custodian and standing proxy agreement
- A contract is signed with KSD for local custody and standing proxy services.
- Foreign investor registration
- Any foreigner who intends to acquire or dispose of any of the following securities for the first time shall file an application for registration with the Governor of the Financial Supervisory Service in advance. (Article 6-10, Regulations on Financial Investment Business) nt at a foreign exchange bank in the broker’s name.
- Opening a deposit account
- In case KSD is appointed as the local custodian, the foreign investor can open a deposit account in KSD as a participant, unlike clients of other custodians. nt at a foreign exchange bank in the broker’s name.
- Opening a cash account
- A foreign investor should open an external account and non-resident KRW account exclusively for securities investment under their own name in order to invest in domestic KRW-denominated securities and remit sale proceeds.
- Otherwise, a foreign investor can use a foreign currency account for investment at a foreign exchange bank in the broker’s name.
Features of the KSD’s standing proxy service
- Efficient processing is made possible through various linked services.
KSD is also the CSD in addition to performing the role of custodian and standing proxy, which enables KSD to provide custody and rights exercise services for investments in domestic securities more efficiently.
- Custody service brochure