Financial Services Commission, Korea Securities Depository Removed from Public Institution Status Receives Q2 Management Evaluation This Year

[Asia Economy Reporter Ji Yeon-jin] On the 28th, the Financial Services Commission announced that it will conduct a management evaluation in the second quarter of this year regarding the Korea Securities Depository's removal from the list of public institutions.

Through the materials distributed on the same day, the FSC stated, "Although the Korea Securities Depository has been removed from the list of public institutions, the FSC plans to continue management and supervision to improve the Depository's management efficiency," adding, "We intend to ensure appropriate control over the Depository's organization, personnel, budget, and management performance through the currently operating Management Evaluation Committee."

The Management Evaluation Committee consists of a total of five members, including three private experts in economics, management, and capital markets, and has been evaluating the Depository and other capital market institutions under the FSC's jurisdiction, such as the Korea Exchange, since 2015.

The results of the management evaluation will be disclosed annually on the Korea Securities Depository's website, covering major management matters such as budget, settlement, and personnel status, to enable external oversight. Additionally, there are plans to reinforce the Management Evaluation Committee with professionals such as accountants.

Earlier, the Ministry of Economy and Finance held a Public Institution Management Committee meeting chaired by Deputy Prime Minister Hong Nam-ki to review and approve the designation of public institutions for this year. As of January this year, the Korea Securities Depository was removed from the list of public institutions because its government support amount was less than 50%, failing to meet the designation criteria.