"Become a Samsung Electronics Shareholder with Coffee Money" FSC Designates 25 Innovative Financial Services

[Asia Economy Reporter Song Hwajeong] From September, fractional trading of domestic stocks will become possible.

The Financial Services Commission announced on the 16th during its regular meeting that it has newly designated 25 innovative financial services. As a result, the total number of innovative financial services designated by the FSC has increased to 210.

The domestic stock fractional trading service allows trading of domestic stocks in fractional units by using a trust system to issue multiple beneficiary certificates from one whole share. For example, Samsung Electronics, priced at around 74,000 KRW per share, can be split into 0.1 shares, allowing investors to buy at around 7,400 KRW or purchase just 10,000 KRW worth. Securities firms aggregate investors' fractional share orders, cover the shortfall to form whole shares, and then submit bids to the Korea Exchange under their own name. The acquired shares from completed trades are entrusted to the Korea Securities Depository.

Related financial institutions include Korea Securities Depository, Kyobo Securities, Daishin Securities, DB Financial Investment, Meritz Securities, Mirae Asset Securities, Samsung Securities, Sangsangin Securities, Shin Young Securities, Shinhan Financial Investment, IBK Investment & Securities, SK Securities, NH Investment & Securities, Yuanta Securities, Eugene Investment & Securities, eBest Investment & Securities, Kakao Pay Securities, KB Securities, KTB Investment & Securities, Kiwoom Securities, Toss Securities, Hana Financial Investment, Korea Investment & Securities, Hanwha Investment & Securities, and Hyundai Motor Securities.

With fractional trading enabled, investors are expected to have expanded access to stock investment due to the lowered minimum investment amount per stock, and it will be possible to efficiently construct various portfolios for risk management and diversification of returns with small-scale investments.

However, the Korea Securities Depository prohibits transactions between trust assets and proprietary assets, and each securities firm must establish a risk disclosure system so that investors clearly understand the differences between general domestic stock trading and fractional trading. Securities firms are limited to acquiring up to 5 shares per stock with their own assets during the brokerage of fractional trades, and exercising voting rights is also prohibited.

An FSC official stated, "From September, the domestic stock fractional trading service will be launched sequentially according to each securities firm's system construction schedule."

Additionally, the designation periods for eight innovative financial services have been extended by two years each, including ▲real-name verification service for bank walk-in customers (Industrial Bank of Korea) ▲non-face-to-face account opening service using facial recognition technology (KB Securities, Hanwha Investment & Securities) ▲one-click deposit and savings dispersion service (CB Financial Solutions) ▲group insurance service for workplaces with fewer than five employees (Samsung Life Insurance) ▲online simple subscription service for corporate insurance (Hyundai Marine & Fire Insurance) ▲rental processing agency service through rental brokerage platform (Shinhan Card) ▲small amount postpaid payment service (Naver Financial), among others.

This content was produced with the assistance of AI translation services.