FSS to Allow Foreigners to Invest in Korean Stocks Through Overseas Local Securities Firms

• FSS announced that it will relax the requirements for opening a foreign integrated account to allow foreigners to more easily invest in Korean stocks through overseas local securities firms.

• On 11 March, Interactive Brokers announced that it invested 15 billion won in Next Securities. So far, IBKR has not formally announced that it will allow trading of Korean stocks.

• We expect IBKR to allow trading of Korean stocks in 2025, mainly due to its investment in Next Securities and FSS's announcement today on relaxation of opening foreign omnibus accounts.

On 2 April, the Financial Supervisory Service (FSS) announced that it will relax the requirements for opening a foreign integrated account (omnibus account) to allow foreigners to more easily invest in Korean stocks through overseas local securities firms.

Korea’s financial authorities are easing regulations to make it easier for foreign investors to invest in the country. They plan to relax the requirements for opening omnibus accounts, allowing overseas securities companies—beyond just domestic subsidiaries—to open such accounts. This change will be included in amendments to the Financial Investment Services and Capital Market Act.

To ensure effective supervision, authorities will establish clear guidelines for both domestic and foreign securities firms. The Financial Supervisory Service (FSS) will collaborate with the Korea Financial Investment Association (KFI) to develop a comprehensive guideline covering reporting systems, customer due diligence, and operational processes.

Additionally, the Financial Services Commission (FSC) has designated this regulatory improvement as an “innovative financial service” under the financial regulatory sandbox, granting it special regulatory status from April 2, 2025. A pilot operation will be conducted to assess the system and make necessary improvements. These changes aim to make investment in Korea more convenient for foreign investors while strengthening capital markets by attracting a wider range of investors and increasing capital inflows.