Kim Jeonggak, President of Korea Securities Finance, "Securities Firms' Liquidity Support Scale Increased to 30.7 Trillion Won"

Emphasizing the Role of 'Capital Market Safety Net'
100-Day Press Conference Held
Collateral Scope Expanded to Overseas Securities When Collateral Is Insufficient

Kim Jeong-gak, President of Korea Securities Finance Corporation, announced on the 12th that "to strengthen the role of the 'capital market safety net,' the scale of liquidity support for securities firms will be expanded to 30.7 trillion won, an increase of 4.2 trillion won compared to the previous year."

At a press conference marking his 100th day in office, President Kim stated, "The main task of Securities Finance is to supply liquidity to the securities market," adding, "Expanding the overall supply scale upon my inauguration does not mean that the current capital market is assessed as highly risky."

He further explained, "There are internal regulations and approvals from financial authorities involved, and even when supplying the existing 26.5 trillion won, risk management measures were in place. You can trust our management capabilities."

President Kim also said, "To provide practical financial support, we plan to diversify maturities and interest rates according to the needs of securities firms and others, and to improve the system to resolve fund shortages by expanding collateral coverage to overseas securities when collateral is insufficient."

To increase the operating yield of the increased foreign currency deposits, the management method will also be changed. As of the end of August, foreign currency deposits totaled 7.9 trillion won. Previously, these were managed mainly through foreign currency deposits, money market funds (MMF), repurchase agreements (RP), and swaps, but the plan is to expand the proportion of MMF and swaps and include overseas government bonds and offshore deposits. The dedicated foreign currency team will be upgraded from a team to a department. The Hong Kong office, scheduled to open at the end of September next year, will also be utilized.

In line with the enforcement date of the amended Emissions Trading Act scheduled for February next year, continuous consultations with related agencies will be held to establish the greenhouse gas emissions trading deposit system and system. Securities Finance will be responsible for managing investor deposits in emissions trading.

Preparations will be made to ensure the smooth operation of the '3 trillion won + α' and 'PF-ABCP purchase' programs, which will support securities firms in liquidity crises. The Securities Market Stabilization Fund, which is deployed during increased market volatility, will also be prepared.

To respond to digital transformation, a digital new technology contest called 'KSFC Digital Challenge (tentative)' will be held, collaborating with winning big tech and fintech companies. Strategic investments will be considered if necessary. Business areas related to token securities will also be explored and supported. President Kim said, "Just as Securities Finance manages investor deposits in emissions trading as an institution that centrally holds investor deposits, I believe it will play a similar role in STO (Security Token Offering) and fractional investment."

Meanwhile, a digital-friendly culture will be fostered throughout the company. Internally, a culture of open communication will be created, and externally, as part of social contribution activities, support for the education of self-reliant youth and North Korean defectors will continue. The employee stock ownership app will be upgraded, and an IT service will be developed to simplify the complex market purchase procedures for employee stock ownership.