How to Buy Korean Stocks as a Foreigner (2026 Guide)

Want to know how foreigners open a securities account in Korea? Here’s the short version. Korea scrapped its foreign investor registration system in December 2023. You no longer pre-register with the Financial Supervisory Service before you buy shares. All you need now is a passport (or an alien registration card, if you live in Korea), a local bank account, and a Korean mobile number. This guide covers every step: picking a broker, funding your account, and placing your first trade. It also covers the part most guides skip — what you’ll actually owe in tax. By the end, you’ll be ready to buy KOSPI and KOSDAQ stocks like Samsung Electronics, SK Hynix, and Hyundai Motor with no guesswork.

This article is for educational purposes only and is not financial, tax, or legal advice. Always confirm current requirements with your broker, the National Tax Service (NTS), or a licensed advisor before making investment decisions.

Key Takeaways

• Korea abolished foreign investor pre-registration (the old IRC) in December 2023. A passport (or ARC for residents) is now enough to open an account.
• You’ll still need a Korean bank account and, in most cases, a Korean mobile number to finish onboarding.
• Non-resident capital gains are generally tax-exempt under treaty for ordinary listed-share trading. A “major shareholder” threshold applies (for non-residents, 25% or more of a company counted with related parties) as the main exception.
• Dividend withholding defaults to about 22% unless you file treaty paperwork in advance. That paperwork typically brings it down to around 10–15%.
• Not every broker’s app works equally well for foreigners. Confirm non-resident onboarding directly with customer service before you apply.

Table of Contents

1. Can Foreigners Legally Buy Korean Stocks?
2. Step 1: Gather the Required Documents
3. Step 2: Choose a Securities Broker in Korea
4. Step 3: Open Your Securities (Trading) Account
5. Step 4: Link a Korean Won Bank Account and Fund Your Account
6. Step 5: Place Your First Trade
7. Understanding Taxes as a Foreign Investor
8. Common Mistakes Foreign Investors Make
9. Frequently Asked Questions

Can Foreigners Legally Buy Korean Stocks?

Yes — and it’s easier than it used to be. Korea has spent over a decade trying to get reclassified from “emerging market” to “developed market” status by index providers like MSCI. That status alone could pull in tens of billions of dollars in passive investment.

A Rule That Finally Disappeared

For more than thirty years, every foreign investor had to pre-register with the Financial Supervisory Service before making a single trade and receive a unique ID number first. It was an old rule from a more capital-controlled era. It was also probably the single biggest barrier for retail investors abroad. The Financial Services Commission scrapped that requirement. Foreign investors can now open accounts directly with Korean securities firms, with no pre-registration step.

Two Types of Foreign Investor

In practice, there are two groups:

• Non-resident foreigners (living outside Korea): open an account with just a passport number. English-language support still varies a lot by broker, though.
• Foreign residents in Korea (on a visa): use an Alien Registration Card (ARC), plus a Korean bank account and phone number. This is the standard trio for financial ID checks in Korea.

Corporate and institutional investors use a Legal Entity Identifier (LEI) instead of a personal ID.

Step 1: Gather the Required Documents

Before contacting any broker, get these ready. The exact list depends on which group above you fall into:

Requirement	Non-Resident Individual	Foreign Resident (Visa Holder)
Identification	Passport	Alien Registration Card (ARC)
Korean bank account	Often required for KRW settlement	Required
Korean mobile number	Not always required	Required for most apps
Proof of address	Sometimes requested	Usually on ARC
Tax residency form	Required for treaty benefits	Required for treaty benefits

One thing to flag: if you already hold an old-style IRC number from before the abolition, keep using it for new accounts. You won’t be issued a fresh one. Each ID is tied to a single “beneficial owner,” and Korean regulators have made clear this doesn’t change retroactively.

Step 2: Choose a Securities Broker in Korea

The registration rule is gone nationwide. But not every brokerage has built a smooth process for foreign clients. This is where most of the remaining friction lives, so treat broker selection as a real decision, not a formality.

Digital-First Brokers vs. Traditional Firms

Digital-first brokers — the mobile-native platforms popular with younger Korean investors — tend to offer the fastest non-face-to-face account opening. English support inside the app is inconsistent, though, and some restrict full functionality to residents with an ARC.

Traditional full-service brokerages generally accept foreign clients too, but they may require an in-person branch visit, a physical bankbook, and Korean-language paperwork. In exchange, you often get more advanced trading terminals (HTS) and deeper research.

Before you commit to one, get written confirmation from customer service that:

1. They accept your specific visa type or non-resident status.
2. Non-face-to-face (“untact”) account opening is actually available to foreigners — not just advertised.
3. They support international wire funding, if you’re investing from abroad.

Step 3: Open Your Securities (Trading) Account

Most brokers let you do this entirely through their mobile app:

1. Download the broker’s app. Select “foreigner” or “non-resident” account opening, if that option exists.
2. Submit ID verification — usually a photo of your passport or ARC, plus a live face scan.
3. Enter your Korean bank account details for settlement.
4. Complete mobile carrier verification (PASS app or SMS).
5. Sign the account agreement and risk disclosures digitally.

Approval can take anywhere from same-day to a few business days, depending on how the broker reviews foreign-national applications.

Step 4: Link a Korean Won Bank Account and Fund Your Account

Settlement on Korean exchanges happens in won, so a linked bank account is required. If you’re funding from abroad as a non-resident, ask your broker whether they support the following:

• Direct international wire transfer into a custodian-linked account, or
• A local KRW account opened with a partner Korean bank.

Currency conversion spreads and wire costs vary a lot between brokers and banks. Compare the actual exchange rate you’ll receive — not just the advertised fee — before wiring a large amount. On big transfers, the spread often matters more than the commission.

Step 5: Place Your First Trade

Korean stocks trade on two boards:

• KOSPI: large, established companies (Samsung Electronics, SK Hynix, Hyundai Motor, and similar names)
• KOSDAQ: growth- and technology-focused mid- and small-cap companies

Regular trading runs 9:00 AM to 3:30 PM KST on business days. Most platforms also offer pre-market and after-hours sessions, though who actually trades in those sessions is worth understanding before you use them. Order types will look familiar if you’ve traded on any developed exchange: limit orders, market orders, and conditional orders. If you’re in a different time zone, plan around KST hours—don’t assume your local market’s open lines up.

For company research, the Korea Exchange (KRX) publishes market data directly. And starting with the 2026 phase-in of expanded English disclosure rules, larger KOSPI companies (total assets above roughly 2 trillion KRW) must file English-language disclosures for financial statements and material events. That’s a real reduction in the translation work foreign investors used to have to do themselves.

Understanding Taxes as a Foreign Investor

Korean tax treatment of foreign investors is better than most newcomers expect, but it has real edge cases. This is a general overview, not tax advice—your actual liability depends on your residency, nationality, and any applicable treaty, so confirm specifics with a tax professional.

The Main Tax Rules

Tax Type	General Rule for Foreign Investors
Capital gains on listed shares	Generally exempt from Korean tax for most non-resident investors under applicable tax treaties, as long as gains are realized through the regular securities market
Capital gains—”major shareholder” exception	If you (with related parties) held 25% or more of a listed company at any time in the year of sale or the preceding five years, non-residents can become taxable in Korea. Below that threshold, ordinary listed-share gains are generally exempt. Korean tax residents face a lower “major shareholder” bar — about 1% of a company or KRW 5 billion
Dividend withholding tax	Standard withholding is around 22% (20% national + a 2% local surtax), but most tax treaties reduce this—commonly to a range of roughly 10–15% depending on the treaty country
Securities transaction tax (STT)	A small transaction tax applies on the sale side: roughly 0.05% (plus a rural development surtax) for KOSPI shares and about 0.2% for KOSDAQ shares, as rates are restored following the temporary pandemic-era reductions

A Few Practical Notes

• Korea repealed its planned broad-based financial investment income tax before it ever took effect. Most individual retail investors don’t face a separate capital-gains regime layered on top of ordinary stock trading. The thresholds that do apply are covered in capital gains tax for foreign investors.
• Claiming a reduced treaty withholding rate on dividends usually requires paperwork submitted in advance. Brokers have moved away from allowing retroactive claims, so complete your tax residency paperwork as soon as your account is approved. Our guide to cutting the dividend withholding rate to 15% covers what the forms ask for.
• If you’re a Korean tax resident rather than a non-resident investor, a different set of rules applies, including to any foreign stocks you hold. That’s outside the scope of this guide.

Common Mistakes Foreign Investors Make

• Assuming every broker is equally foreigner-friendly. The registration requirement is gone nationally, but individual app-level restrictions on foreign nationals persist—verify before sinking time into an application.
• Ignoring the major-shareholder capital-gains threshold. For non-residents the bar is high — 25% ownership — but it still catches anyone who concentrates heavily in a single small-cap name, and Korean tax residents face a far lower threshold.
• Skipping the tax residency paperwork. Without it, brokers typically default to the highest withholding rate rather than your treaty rate, and reclaiming the difference afterward is far more painful than filing the form up front.
• Underestimating currency conversion costs. For non-residents wiring funds internationally, the spread on currency conversion can outweigh the brokerage’s advertised commission entirely.

Frequently Asked Questions

Do I need to live in Korea to buy Korean stocks? No. Non-resident foreigners can open accounts with brokers that support non-resident onboarding. The process and documents differ from what foreign residents with an ARC need, though.

Can I trade Korean stocks using a crypto exchange account? No. Stock brokerage accounts and crypto exchange accounts are entirely separate systems, with different licensing and ID checks. Crypto exchanges also don’t offer won-denominated stock trading.

Is the old investment registration certificate still valid? If you already hold one, you keep using it for your existing accounts. New investors simply never need to apply for one.

What happens if my broker doesn’t support my visa type? Contact several brokers directly. Policies on which visa categories are accepted for online account opening vary by firm, and they change from time to time.

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Disclaimer: This article is intended for general informational purposes only and does not constitute financial, investment, tax, or legal advice. Tax rates, regulatory requirements, and brokerage policies referenced here are subject to change; verify current rules with the Financial Services Commission, the National Tax Service, or a licensed professional before making investment decisions. This is not financial advice.

Last updated: July 2026