Korea Securities Finance Corp. (KSFC) plans to introduce the “Our Company Shareholders Installment Savings” product from next year, which will exempt tax on up to 4 million won in savings to spur the expansion of “Our Shares” among the company’s employees.
The KSFC has also been considering a cooperative deal with Japan Securities Finance Corp. on the exchange of stocks listed on the two countries’ stock exchanges.
During an interview with a local media on the occasion of the company’s 60th anniversary on Sept. 1, President Park Jae-shik said the company will introduce a new record-breaking savings product when implementation decrees on the Tax Law are changed at the end of this year, so that people can purchase shares of their companies with their savings.
The KSFC has been working to implement the Tax Law since last year. It set up a task force jointly with the Ministry of Strategy and Finance and the Ministry of Employment and Labor. President Park said the platform for the exchange of stocks will be launched in January. Members will be able to exchange stocks.
SMEs will form the “Our Company Share Clubs,” although their total workforce numbers fewer than 50. Ultimately they will manage all matters related to the club, from their formation, acquisition of stocks and operation.
As of Sept. 8, the KSFC managed clubs for over 1,000 companies with 360,000 employees, an increase of 74 percent from five years ago.
The CEO said talks with the Japan Securities Finance Corp. on signing an MOU for mutual cooperation on the exchange of stocks among members of each firm should be concluded by year-end.
If that plan is expanded, hedging against a stock price fall can be made, which facilitated only long-term investments, Park said.
Established in 1955, the KSFC is the only securities finance-specializing institution in Korea and has contributed to the revitalization of the capital market by providing the funds and services needed for the issuance, circulation, and brokerage of marketable securities. It also promoted the stable development of the securities industry and the investor protection system through the safe management of securities investors’ deposits and its ESOP support services.
The KSFC will strive to maintain the confidence of investors and the market by providing differentiated integrated securities services while faithfully performing its public functions for the development of the financial investment industry.
The KSFC was established for the purpose of 'supplying funds to the securities market and performing specific tasks to contribute to capital market development, there by supporting national economic development.
Categorized as a stock company under the Korean Commercial Act, the KSFC was founded in October 1955 after obtaining a business approval from the Financial Services Commission in accordance with the Financial Investment Services and Capital Markets Act.
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