Is Foreign Capital Set to Flow In?... Growing Optimism for Securities Stocks with Integrated Accounts

Korean Brokerages Accelerate Launch of Integrated Accounts for Foreign Investors

"Attention on Potential Increase in Foreign Net Buying"

As integrated account services allowing foreign investors to trade domestic stocks without opening separate Korean accounts are gaining traction, there is a growing consensus that this will serve as a catalyst for the overall securities sector. With profit growth continuing, especially in the semiconductor sector, there are expectations that capital inflows into the Korean stock market will also be sustained.

According to the securities industry on May 8, major securities firms such as Yuanta Securities, Meritz Securities, Mirae Asset Securities, Shinhan Investment & Securities, NH Investment & Securities, and KB Securities are preparing to launch integrated account services for foreigners, following Hana Securities and Samsung Securities. Some of these companies plan to introduce their services within the first half of the year.

Previously, news that Samsung Securities had begun a pilot operation of its integrated account service in the U.S. market through a partnership with U.S. brokerage firm Interactive Brokers (IBKR) led to a surge in related stocks, with the KRX Securities Index rising by 10.9% and Samsung Securities jumping by 28.3% on May 4.

Go Yeonsu, a researcher at Hana Securities, highlighted the “launch of integrated account services for foreigners” as the reason behind the strong performance of securities stocks in a report released the previous day, emphasizing that “it is time to pay attention to the potential for increased net buying by foreign investors.”

Researcher Go noted, “Although the integrated account system for foreigners was introduced in March 2017, there have been no actual cases of its use due to the obligation for overseas securities firms to report final investor details immediately and the lack of specific guidelines.” She added, “As robust profit growth is expected, especially in the semiconductor sector, accessibility for overseas individual investors could improve through global online brokerage platforms such as IBKR.”

The share of foreign investor trading in Korea remains in the low 20% range, which is lower than other major Asian markets. By contrast, Japan’s average foreign investor trading share was 68% between 2017 and 2025, and Taiwan’s soared to 35% in 2025 after it lifted restrictions on foreign investment.

Another key development is the recent expansion of mandatory English disclosures starting this month. Researcher Go said, “From May, the requirement for English disclosures will be extended to companies with assets of 2 trillion won or more,” adding, “This will allow foreign investors to access domestic stocks more conveniently.”

Based on profit growth led by the semiconductor sector, capital inflows into the domestic stock market are expected to continue. The estimated operating profit for KOSPI-listed companies this year is 867 trillion won, a 182.5% increase from the previous year. Researcher Go predicted, “Capital inflows centered on the KOSPI will persist,” and forecasted, “The Korean stock market is expected to see the steepest growth compared to other major global markets.”

She continued, “The securities sector directly benefits from index increases, higher transaction value, and expanded foreign inflows,” and added, “Not only is brokerage revenue expected to grow, but trading profit and loss are also likely to improve. Accordingly, we maintain a positive outlook for all stocks under coverage.”

On the same day, NH Investment & Securities also assessed that the integrated account system for foreigners will mark the beginning of a more advanced Korean stock market. Yoon Yudong, a researcher at NH Investment & Securities, stated in a report, “The news of Samsung Securities’ integrated account operations for foreigners has once again drawn attention to the structural growth potential of the securities sector,” adding, “Other major firms are also preparing to launch similar services, and this will lead to an expansion in foreign transaction value over the long term.”

Researcher Yoon added, “This change will improve access for foreign investors to the domestic market, and new demand from non-resident individual investors will diversify the foreign investor base.” He also commented, “As trading procedures are streamlined, global liquidity in the Korean stock market will increase and the capital market will be further activated.”

SK Securities maintained an ‘OVER WEIGHT’ investment rating for the securities sector, stating that the average daily transaction value in April (67.8 trillion won) remained solid. Jang Youngim, a researcher at SK Securities, said, “Concerns about the securities sector peaking out still exist, but the average daily transaction value remains in the high 60 trillion won range, showing continued strength,” and assessed, “The favorable environment for the securities sector continues into the second quarter.”

She emphasized that news of the integrated account service for foreigners is having a positive impact on investor sentiment regarding securities stocks in the context of a strong stock market, stating, “Improved accessibility to the domestic stock market is expected to attract new capital inflows and contribute to further activation of the capital market.” She selected Korea Financial Group and Samsung Securities as top picks, with Kiwoom Securities as a secondary preference.

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