Lead

South Korea's financial authorities and brokerages are ramping up efforts to attract foreign investors, capitalizing on a record-setting rally in the benchmark KOSPI index. The Financial Services Commission (FSC) is seeking regulatory revisions to allow foreign investors to trade domestic exchange-traded funds (ETFs) directly, while several major brokerages are expanding their omnibus account services to simplify access for international clients.

The KOSPI has surged 82 percent since the first trading day of the year, closing at 7,847.71 on Friday, according to Yonhap News Agency. The rally, driven by strong gains in tech giants Samsung Electronics and SK hynix amid the global artificial intelligence boom, has put South Korean assets in the spotlight.

Coverage Comparison

Reports from Yonhap News Agency, South Korea's leading wire service, have detailed these developments across multiple articles. One report highlighted the FSC's plan to revise investment business regulations to permit direct foreign investment in local ETFs, with a prior notice expected next month. Another article quoted FSC Chairman Lee Eog-weon announcing upcoming regulatory changes for offshore retail investors, specifically enabling ETF trading through omnibus accounts.

A third report focused on brokerages' proactive steps, noting that Samsung Securities has partnered with Interactive Brokers (IBKR) to pilot foreign omnibus accounts in the U.S., allowing international investors to trade Korea-listed stocks directly. Kiwoom Securities has signed a similar partnership with Webull, while Mirae Asset Securities has finalized internal preparations and is targeting a first-half launch. Toss Securities is also reviewing the service, and a total of seven local brokers are preparing to offer omnibus accounts, according to the FSC.

Key Claims

  • Direct ETF Trading for Foreigners: The FSC is revising regulations to allow foreign investors to trade domestic ETFs directly, a move that could draw more overseas capital into Korean assets. This was reported by Yonhap, citing unnamed financial sources.
  • KOSPI Rally: The benchmark index has risen 82 percent year-to-date, closing at 7,847.71 on Friday, driven by the AI boom and gains in Samsung and SK hynix.
  • Omnibus Account Expansion: Brokerages are partnering with global platforms and expanding infrastructure. Samsung Securities' pilot with IBKR and Kiwoom's deal with Webull are confirmed, while Mirae Asset and Toss are in advanced stages.
  • Regulatory Timeline: The FSC plans to issue a prior notice next month, with potential introduction in the second half after brokerages overhaul trading systems and resolve withholding tax issues with the finance ministry.
  • Split Listing Guidelines: FSC Chairman Lee said guidelines on banning 'split listing' will be revealed by early June, addressing a practice linked to the 'Korea discount.'

Perspectives

Regulatory Perspective: The FSC views these changes as essential to attract foreign capital and boost demand for Korean assets. Chairman Lee emphasized that foreign investors are 'sending love calls' to buy Korean stocks, but regulatory barriers remain. The agency is also tackling structural issues like split listing to improve market appeal.

Brokerage Perspective: Firms like Samsung Securities and Kiwoom are proactively building partnerships to facilitate foreign access, seeing the rally as an opportunity. Mirae Asset is contacting global clients, and Toss is reviewing entry, indicating broad industry momentum.

Investor Perspective: Foreign retail investors have faced complicated account-opening procedures, limiting their participation. Omnibus accounts and direct ETF trading are expected to lower these barriers, potentially increasing foreign investment flows. However, the timeline depends on regulatory approvals and system readiness.

Note: The KOSPI figures and specific partnership details are as reported by Yonhap; no independent verification was available at the time of writing.