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Photo = Korea Exchange |
[Alpha Biz= Paul Lee] Foreign investors will soon be able to invest directly in Korean stocks through local overseas securities firms. By opening accounts with domestic securities companies at overseas branches, foreign investors' access to the Korean stock market is expected to improve.
Hana Securities, which has been granted regulatory exemptions, plans to allow overseas investors to open accounts at Hong Kong-based securities firms and invest in Korean stocks as early as the first half of this year.
On April 2, the Financial Services Commission and the Financial Supervisory Service announced that they would permit foreign financial investment firms to open and use omnibus accounts in their own names, even if they are not affiliates or major shareholders of domestic securities firms—previously a requirement for opening such accounts.
The foreign omnibus account system enables foreign individual investors (ultimate investors) to trade and settle stock transactions collectively under a financial investment firm’s name, without opening individual Korean accounts. This system mirrors how domestic retail investors trade in overseas markets like the U.S. However, trading stocks subject to foreign ownership limits and engaging in short selling will remain prohibited.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
