Chapter 5. The Intermediated System in Korea
As emphasised above, the Korean intermediated system is designed resting on the property law model as the German system. Under the property law formulation, the fundamental principle in property transfer is that the specific subject matter of the transaction is directly transferred from the transferor to the transferee, keeping its identity without intermediate acquistion. In the intermediated system, this principle is reified by strict matching book-entries to the accounts of the transferor and the transferee. In addition, since the Korean intermediated system, as a method of encumbering security interests in securities, recognises only pledge (jilgweon), a priority issue does not occur in a complicated way. Like the primary priority rule of the Geneva Securities Convention, and Article 1209 of BGB, Article 333 of KCC provides the first-in-time rule for several interests of pledges over the same movable.