Foreign institutional investors can directly invest in the Korean stock market through standing proxy and brokerage firms in Korea.
- STEP1: Appoint Standing Proxy
Contact a global bank offering custodian, FX, security settlement, and other proxy services in Korea*.
* Global banks including Citibank, HSBC Bank, Deutsche Bank, Standard Chartered Bank, etc.
- Investor can either directly contact those banks or access through a brokerage firm (mostly a global bank) in the local area.
- STEP2: Register for Investor Registration Certificate (IRC)
- File Foreign Investment Registration Application (FIRA), via the proxy bank, to Financial Supervisory Services(FSS) in Korea to obtain Investor Registration Certificate (IRC)*.
- STEP3: Open a Stock Trading Account and Korean Won(KRW) Bank Account
- Using the IRC code, open a stock trading account at a licensed securities company holding Korea Exchange Membership*.
- * List of Membership Companies
- Open a Korean Won(KRW) bank account at the custodian bank
- STEP4: Transfer Funds & Trade Shares
- Transfer funds to the designated custodian bank through the local bank
- Trade shares via on-line trading system, phone, or any other methods allowed in the account