KSD Account Type

KSD offers various types of accounts for foreign investors looking to trade in the South Korean market. These accounts are designed to cater to different investment needs and preferences. The primary account types include:

• Foreign Currency Account: This account is used for deposits in foreign currency, specifically for acquiring domestic securities.
• Non-Resident Korean Won Account: This account is for converting foreign currency into Korean won (KRW) and is exclusively used for securities investment.
• Trading Account: Investors must open a trading account at a securities firm that has obtained KRX membership, which allows them to execute trades on the Korean stock exchange.

KSD Broker Account Opening Process

To open a trading account with KSD, foreign investors must follow a structured process:

• Appointment of Standing Proxy: Investors must appoint a standing proxy, which can be KSD itself, a foreign exchange bank, or a licensed investment broker. This proxy will handle all necessary procedures for securities trading in Korea.

• Investment Registration: Investors need to obtain an Investment Registration Certificate (IRC) by completing a Foreign Investment Registration Application (FIRA) and submitting it to the Financial Supervisory Service (FSS) along with required identification documents, such as a notarized copy of the passport.

• Open Accounts: After receiving the IRC, investors can open the following accounts:

• A Foreign Currency Account for foreign currency deposits.
• A Non-Resident Korean Won Account for converting foreign currency into KRW.
• A Trading Account with a KRX member institution.

• Funding the Accounts: Investors must transfer foreign funds to their foreign currency account and exchange them for KRW, which will then be transferred to the trading account for executing trades.

• Placing Orders: Once the accounts are set up and funded, investors can place trading orders either directly or through their standing proxy.

This structured approach ensures that foreign investors can efficiently navigate the regulatory requirements and successfully engage in trading on the Korean stock exchange.