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Crowdfunding Service

CrowdNet

KSD, a key infrastructure of the crowdfunding market, supports the development of the crowdfunding market, by providing services to issuers, investors, intermediaries, and supervisory authorities through CrowdNet, a dedicated crowdfunding website.

CrowdNet allows issuers and investors to check issuance or investment limits, and members of the general public interested in crowdfunding to access related information and statistical data.

KSD Crowdfunding Service

KSD, a key service provider of the market, works as a Central Repository, a Transfer Agent, and a Central Securities Depository for Crowdfunding.

  • Overview of Central Repository Service
    • The Central Repository manages information of the Issuers and the investors, which are received from the Online Small Investment Intermediary (Online Intermediary).
    • The Central Repository manages the limits of issuance and investment, which is entrusted from the Online Intermediary.
    • The Central Repository keeps and manages the documents provided by the Online Intermediary and supports supervising authorities.

      * KSD was designated as a Central Repository in Korea from the Financial Services Commission (Aug. 31, 2015).

      Key Infrastructure of Crowdfunding
      Management of Information on
      Issuers and Investors
      Information regarding intermediation request such as amount of securities offering, etc.
      Information regarding Issuers and investors
      Information regarding securities subscription
      and issuance, etc.
      Management and Provision
      of Information
      Keeps information for 10 years from acquisition
      May provide information of other person in exceptional cases, as provided by laws and regulations
      Management of Issuance Limit
      The total amount of the crowdfunding and the amount issued during the previous year shall not exceed KRW 700 million
      Management of Investment Limit
      As per investor type, the limits of investment per Issuer are KRW 2 and 10 million, and the annual limits of investment are KRW 5 and 20 million
  • Overview of the Transfer Agent Service
    • An Issuer shall entrust the management of the Investors' account book to KSD.
      • The Investors' account book refers to a list of owners of securities such as a shareholders' book.

        * Related Article: Article117-14 of the Financial Market Act

    • KSD is to be entrusted with the management of the Investors' account books for equity and investment contract securities from Issuers.
      • For debt securities (bonds), most of which are issued in bearer form, no Investors' account book is necessary.
  • Overview of Securities Deposit Service
    • To encourage long-term investment in start-ups and to protect investors, all securities issued via crowdfunding must be deposited or separately kept in custody with KSD. These may not be resold or transferred for one year.
    • KSD separately keeps in deposit or in custody all securities issued via Crowdfunding.
      Investors' holdings
      No reselling or transferring "1 year"
      Encouraging long-term investment
      Protecting 1st tier Investors
      Issuer and largest shareholders
      No selling "1 year"
      Protecting small-amount investors