[2020 National Audit] CEO Lee Myung-ho "If There Is Responsibility, I Must Take It... Improvement Through Fundnet"

[Asia Economy Reporter Oh Ju-yeon] Lee Myung-ho, President of the Korea Securities Depository (KSD), addressed the controversy over responsibility for the Optimus incident, stating, "If there are parts to be held accountable for, I believe we should bear the burden."

At the National Assembly's Political Affairs Committee audit held on the 20th, Min Byung-duk, a member of the Democratic Party of Korea, pointed out, "The KSD seems to be trying to evade responsibility for the Optimus incident by referring to itself not as a 'general administrative management company' but as a 'simple calculation administrative agency.'"

Rep. Min stated, "The KSD's articles of incorporation also specify that it can perform the role of a general administrative manager," adding, "However, since appointing a major law firm, it appears to be trying to avoid responsibility by claiming to be a 'simple calculation administrative agency,' which is regrettable." He continued, "There is no sign of taking responsibility as a public institution."

In response, President Lee said, "If there are parts to be held accountable for, we should naturally bear the burden," and added, "We will contribute to improving transparency in the private equity fund market through the development of FundNet."

The KSD has announced that it will actively promote the private equity fund system improvement support project through FundNet, a core infrastructure of the asset management industry.

The plan is to expand the scope of assets eligible for FundNet use to include non-marketable assets incorporated by private equity funds (such as non-deposited securities issued by companies, real estate, special assets, etc., which are not deposited or registered with the KSD), and to enable mutual checks and monitoring among market participants through the system, thereby managing private equity fund assets transparently. To this end, the KSD plans to establish the 'Fund Non-Marketable Asset Standard Code Management System' and the 'Fund Asset Balance Reconciliation Support System (tentative name)' next year.

Rep. Min added, "While information about assets can be exchanged among market participants through FundNet, wouldn't it also be necessary to institutionalize and mandate this obligation?"

President Lee replied, "We are not setting mandatory regulations, but public funds are operated through voluntary market participation," and said, "We will discuss the best approach for non-marketable assets."

Rep. Min emphasized, "Relying on obligation as a practice and merely saying 'we will work hard' is insufficient," stressing, "Obligations must be stipulated."