Korea Exchange Hosts '2019 Compliance Awards' Ceremony... Kiwoom Securities Wins 'Grand Prize'

[Asia Economy Reporter Oh Ju-yeon] The Korea Exchange held the '2019 Compliance Awards' ceremony on the 6th. At this event, planned to encourage securities and futures companies to establish internal control systems, establish fair trade order, and enhance the soundness of the capital market, Kiwoom Securities won the grand prize in the excellent internal control category, awarded by the Chairman of the Financial Services Commission. SK Securities received the grand prize, the Chairman's Award from the Korea Exchange.

(Photo front row from left) Kim Shin, CEO of SK Securities; Lee Hyun, CEO of Kiwoom Securities; Choi Hyun-man, CEO of Mirae Asset Daewoo. (Back row from left) Song Joon-sang, Chairman of the Market Surveillance Committee at Korea Exchange; Jung Ji-won, Chairman of Korea Exchange; Choi Jun-woo, Standing Commissioner of the Securities and Futures Commission; Oh Se-jung, Head of the Self-Regulation Department at the Korea Financial Investment Association.

Kiwoom Securities ranked first among 56 member companies evaluated overall. It was highly praised for establishing separate standards regarding the disclosure procedures of investigation and analysis materials to prevent front-running and operating an information usage registration system to protect personal information. Internal control procedures were also improved, such as introducing a pre-approval process by the compliance monitoring team before executing large-volume trading orders. Publishing an annual casebook on unfair trading and utilizing it for related education was noted as a differentiated internal control strengthening activity.

SK Securities ranked first among 43 small and medium-sized member companies by scoring points for building an efficient monitoring system to prevent unfair trading. They established a related account search system for accounts submitting unhealthy orders and strengthened pre-warning functions for submitters of unhealthy orders. By building a monitoring system for branch-specific stock concentration and excessive holdings, they are actively promoting activities to prevent potential financial accidents.

The Excellence Award in the internal control improvement category was awarded to Mirae Asset Daewoo. Mirae Asset Daewoo ranked first among 56 companies in the internal control improvement category. They were evaluated for creating a checklist of legal compliance items to be inspected, systematizing the request and submission of materials related to complaints, adding notification functions, and advancing the complaint management system. They also increased the number of on-site internal control inspections by more than 30% compared to the previous year.

Chairman Jung said, "We will focus the exchange's capabilities on establishing a fair market order with investor trust in the market as a core value," adding, "We will strengthen monitoring such as managing theme stocks in preparation for the general election and continuously inspect vulnerable areas of internal control across the financial investment industry."