South Korean brokerages are seeking partnerships and expanding infrastructure for foreign omnibus accounts to attract more foreign investors. These investors have played a significant role in driving the recent tech rally that propelled the country’s benchmark index to record levels. Samsung Securities Co., a major domestic brokerage, has partnered with Interactive Brokers LLC. (IBKR), a global online brokerage platform, to offer a pilot service of foreign omnibus accounts in the United States. This collaboration enables international investors using IBKR to trade Korea-listed stocks directly through Samsung Securities’ infrastructure.
Other major domestic brokerages in South Korea are also following suit. Kiwoom Securities Corp., a leading retail broker, has partnered with Webull Corp., a U.S.-based broker-dealer, to provide a similar service. Mirae Asset Securities Co., one of the country’s largest brokerages, is in the final stages of preparations to introduce such accounts and is reaching out to global clients with plans to launch in the first half of the year. Additionally, seven local brokers are gearing up to offer omnibus account services, as confirmed by the Financial Services Commission (FSC).
Omnibus accounts allow nonresident investors to trade South Korean equities directly through the brokerages they use in their home markets. Initially introduced in 2017 to facilitate foreign access to the domestic market, these accounts saw limited usage due to regulatory restrictions. However, in January, the FSC removed these limitations as part of the government’s strategy to elevate South Korea to developed-market status, as per Morgan Stanley Capital International’s guidelines. Market analysts view the introduction of omnibus accounts positively, anticipating increased foreign capital inflows into the local market.
Analyst Yoon Yoo-dong highlighted that foreign omnibus accounts could mark the beginning of the K-stock market’s advancement and enhance global liquidity inflow. Moreover, the potential increase in trading activities could lead to higher commission earnings, benefiting local brokerages. Recent movements in local brokerage stocks reflect a market consensus supporting this optimistic outlook. Samsung Securities saw a surge of over 28 percent following reports of its partnership with IBKR, while Kiwoom Securities witnessed a more than 14 percent increase in share value within a single trading day.
