Korean securities firms are accelerating the adoption of foreign integrated account services. On the 12th, Daesin Securities signed a business agreement with US broker-dealer Alpaca to expand cross-border business and offer domestic stock brokerage services to foreign investors without requiring separate Korean account openings. Shinhan Investment Securities also joined the market by partnering with Hong Kong's Guangfa Securities for integrated account service cooperation. The Financial Services Commission's regulatory improvements have significantly lowered entry barriers for foreign individual investors.
Daesin Securities Partners with Alpaca for Cross-Border Stock Access
Daesin Securities recently signed a business agreement with Alpaca, a US broker-dealer with self-clearing qualifications, to expand cross-border business. Through this agreement, Daesin Securities plans to pursue domestic stock brokerage services using foreign integrated accounts. Global brokers and overseas investors affiliated with Alpaca will be able to access the Korean stock market more easily without opening separate domestic accounts.
Shinhan Investment and Guangfa Securities Cooperate on Integrated Account Services
Shinhan Investment Securities entered the foreign investor recruitment market by signing a business agreement with Hong Kong's Guangfa Securities for foreign integrated account service cooperation.
Hana Securities Leads Market with First Integrated Account Service
Hana Securities led the market by launching Korea's first related service in October with Hong Kong's Emperor Securities. The firm has since expanded its partnership scope to Japan's Capital Partners Securities and Chinese online securities firm Futu Securities, accelerating its strategy to target Greater China and Asian investors. Samsung Securities, Yuanta Securities, Meritz Securities, Kiwoom Securities, Mirae Asset Securities, NH Investment & Securities, KB Securities, and Eugene Investment & Securities are operating or pursuing the introduction of related services.
Integrated Account System Eliminates Domestic Account Requirement
The foreign integrated account system allows overseas investors to trade Korean stocks through local securities firms without opening accounts directly with domestic securities firms. Previously, account opening and investor registration procedures were complex, creating high entry barriers. The Financial Services Commission improved accessibility by designating innovative financial services, establishing guidelines, and amending related regulations.
Securities Firms Expect Brokerage Commission Revenue Expansion
With these regulatory improvements, securities firms expect expanded brokerage commission effects. While foreign investor trading in the domestic stock market has been centered on institutional investors, the activation of integrated accounts will allow foreign individual investors to easily access Korean stocks through local securities apps. An official from the financial investment industry stated that the expansion of foreign integrated accounts can lead to global retail business expansion and will be a meaningful opportunity for securities firms in terms of discovering new revenue sources.
FAQ
What did Daesin Securities do on the 12th?
Daesin Securities signed a business agreement with US broker-dealer Alpaca to expand cross-border business and offer domestic stock brokerage services using foreign integrated accounts.
How does the foreign integrated account system work?
The system allows overseas investors to trade Korean stocks through local securities firms without opening accounts directly with domestic securities firms, eliminating the need for separate Korean account openings.
