Korea ST Trading announced that its over-the-counter distribution platform service for investment contract securities based on small business joint venture profits was designated as an innovative financial service by the Financial Services Commission on April 30.
The service designated this time is structured to support the issuance of investment contract securities based on the contractual profit rights generated from joint business ventures of small and medium-sized businesses selected as 'Century-Year Stores' certified by the Ministry of SMEs and Startups, and to distribute them over the counter through a multilateral counterparty trading method.
The platform is being evaluated as a new digital financial model by helping small business owners secure funds through joint investments rather than loans from financial institutions.
In addition, the platform provides a structure that reduces securities issuance costs and allows small business owners to directly participate as issuers, thereby increasing autonomy and efficiency. LS Securities will participate as an account management agency in the issuance and distribution process to ensure transaction reliability and stability.
In terms of service design, we have established a system that can prevent unfair issues that have occurred in the virtual asset market by separating issuance and distribution and introducing investor protection measures such as KYC (know your customer system) and AML (anti-money laundering).
This service is also notable in terms of innovation and public interest. Small business owners can maintain financial soundness by raising funds through joint investment rather than debt, and investors can pursue stability and social value simultaneously by participating in a profit model linked to the local economy.
Korea ST Trading plans to launch a beta service for the platform within the year, and then expand the market by issuing various ‘Century Store’-based investment products through official services.
CEO Cho Won-dong said, “This designation by the Financial Services Commission is significant in that it goes beyond simple platform development and is a social finance model that connects small business owners and the local economy,” adding, “We will contribute to the digital finance ecosystem based on investor protection and a transparent distribution structure.”
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