SEOUL, Jun. 18 (Korea Bizwire) — The Cabinet approved an ordinance Tuesday to introduce an electronic securities system in September, under which listed stocks and bonds do not exist in paper form, officials said.
Under the new system, issuance, registration and circulation of securities will be performed on an electronic basis without physical certificates starting Sept. 16, the Financial Services Commission (FSC) said in a statement.
Nearly all kinds of securities, except commercial papers and investment contract securities, will be subject to the paperless system, the FSC said.
The approval came about three years after the FSC conducted a trial operation of a paperless model for securities.
Beginning Sept. 16, all listed stocks and bonds will be required to be issued on an electronic basis, and the adoption of the electronic securities system is expected to save costs on issuing paper securities, the FSC said.
The Korea Securities Depository Corp. will be in charge of monitoring the process of electronic issuance and circulation, the FSC said.