KSD Signs MOU with Broadridge for Cooperation on Global Proxy Voting

Korea Securities Depository has signed a memorandum of understanding (MOU) with the global fintech company Broadridge in New York, USA, to cooperate on global proxy voting.

Kim Sangho, Consul General of the Republic of Korea in New York (left), Tim Gokey, CEO of Broadridge, and Lee Yunsu, President of the Korea Securities Depository, are taking a commemorative photo after signing a memorandum of understanding. Korea Securities Depository

According to Korea Securities Depository on September 29, the signing of the MOU aims to connect KSD's domestic capital market back-office infrastructure with Broadridge’s global institutional investor and securities custody network. The purpose is to support foreign investors by enabling faster and more efficient access to information on general meetings of shareholders of Korean companies and to facilitate proxy voting.

With the signing of the MOU, the two companies will begin in earnest to link Broadridge’s proxy voting systems, such as ProxyEdge, with KSD’s electronic voting infrastructure. Under the proposed structure, information about general meetings of shareholders of Korean companies will be transmitted in the following order: Korean company → KSD (EVOP: Electronic Voting Platform) → Broadridge → global institutional investors. Proxy voting will be conducted in the reverse direction, with electronic standardized messages exchanged between parties.

Once the systems are connected, user convenience and transparency in cross-border proxy voting processes will be greatly enhanced. Foreign investors will be able to promptly access information on agenda items for general meetings of Korean companies, thereby securing additional time for agenda review and exercising voting rights. In addition, proxy voting for multiple Korean companies can be processed in a unified manner, significantly reducing the possibility of missing or erroneous information related to general meetings and proxy voting.

Going forward, the two companies plan to concretize cross-border proxy voting procedures and system integration measures, also taking into account national regulations and securities custody structures to establish a phased implementation plan. Within this year, both parties will conduct in-depth discussions on key issues and flesh out the cooperation model, developing a 'roadmap for connecting foreign shareholders to electronic proxy voting'. They also plan to develop technical integration methods, detailed step-by-step processes, and operational standards for system development in the coming year.

Tim Gokey, CEO of Broadridge, remarked, “By combining Broadridge’s global expertise in proxy voting with KSD’s capital market infrastructure, we will significantly enhance the efficiency, transparency, and convenience of proxy voting for global shareholders in the Korean market.”

Kim Sangho, Consul General of the Republic of Korea in New York, stated, “This partnership between major capital market infrastructure institutions in Korea and the United States will further deepen financial cooperation between the two countries and serve as an opportunity to develop the Korean capital market into a more open and trusted market.”

Lee Yoonsu, President of Korea Securities Depository, said, “This MOU will improve global accessibility to the Korean capital market, promote the ‘Korea Premium’, and strengthen the trust of global investors in the Korean capital market.”

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