South Korea’s Financial Services Commission announced Wednesday that foreign investors will soon be able to directly invest in Korean stocks through local brokerage firms overseas.

Hana Securities, which has received a regulatory exemption under the FSC’s financial innovation program, will be the first to launch the service following a system development period of approximately two months.

Once implemented, investors in Hong Kong will be able to trade Korean stocks using accounts at Emperor Securities Ltd, a local brokerage. FSC is also in talks with firms in Singapore, Taiwan and Japan to expand the offering.

The change will allow foreign investors to open Korean securities accounts via partner brokerages in their home countries, significantly improving access to Korea’s stock market.

“Non-resident foreigners will be able to place and settle trades through an integrated foreign investor account, without needing to open a separate Korean account,” an FSC official said. “This will enhance convenience, expand the investor base, and encourage capital inflow into Korea’s stock market.”

Previously, only overseas brokerages affiliated with Korean securities firms were allowed to use this system. The updated framework eliminates that restriction, reviving the foreign investor integrated account system, which was introduced in 2017 but remained largely unused due to regulatory limitations.

To support implementation and oversight, the Financial Supervisory Service plans to formalize contracts between domestic and overseas brokerages and issue operational guidelines covering reporting standards, customer verification and account management procedures.

By Chung Hye-lim (hyelimchung@heraldcorp.com)