Korea Securities Depository Launches Early Implementation of 'Electronic Notice Service for General Meeting Information'

[Asia Economy Reporter Oh Ju-yeon] The Korea Securities Depository announced that starting from the 9th, it will provide an electronic notification service for shareholders' meeting information, which guides shareholders of listed companies via mobile with necessary information for exercising voting rights such as the schedule, agenda, and electronic voting methods of shareholders' meetings through certified electronic document intermediaries.

A certified electronic document intermediary is an entity designated by the Minister of Science and ICT that transmits, receives, or intermediates electronic documents on behalf of others. Currently, six companies including KT, KakaoPay, and Naver are designated in Korea.

The Korea Securities Depository originally planned to implement the electronic notification service from next year, but due to the recent spread of the novel coronavirus infection (COVID-19) and the increase in agenda items for auditor appointments, the conditions for regular shareholders' meetings of listed companies held in March have rapidly deteriorated. Therefore, it decided to urgently support these meetings and advance the schedule of the electronic notification service for companies receiving concentrated support for shareholders' meetings.

The Korea Securities Depository plans to provide shareholders who use KakaoTalk with shareholders' meeting information via notification messages by linking with KakaoPay's certified electronic document intermediary service.

This is a pilot service conducted before the main service, and considering the difficulty in securing quorum for listed companies' meetings due to the spread of COVID-19, the Korea Securities Depository will bear all costs associated with providing the service.

In this regard, the Korea Securities Depository operates a system that safely manages shareholders' personal information by establishing personal information protection regulations and conducting personal information impact assessments in accordance with the Personal Information Protection Act. After thoroughly analyzing the results of this pilot service operation and supplementing improvements, it plans to provide the service in full scale to all issuing companies starting next year.

A Korea Securities Depository official stated, "This year, as listed companies are facing more difficulties than ever in operating shareholders' meetings due to the spread of COVID-19, we ask investors who receive shareholders' meeting information via mobile to actively exercise their valuable voting rights." He added, "We expect this electronic notification service to enhance convenience in exercising shareholders' rights and especially increase participation in electronic voting, contributing to the smooth operation of shareholders' meetings of listed companies."

Listed companies wishing to use the shareholders' meeting information electronic notification service must submit an application form for concentrated support for shareholders' meetings to the Korea Securities Depository's 'Shareholders' Meeting Special Support Team,' and the Korea Securities Depository will provide the service according to certain support requirements.

Detailed information can be found on the Korea Securities Depository website and the electronic voting system.