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

As the integrated account service, which allows foreign investors to trade Korean stocks without opening a separate local account, gains traction, experts are forecasting positive effects across the securities sector. There are also expectations that capital inflows will continue, particularly as profit growth in the domestic stock market is being led by the semiconductor industry.

According to the securities industry on May 8, following Hana Securities and Samsung Securities, major brokerages 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 foreign investors. Some of these firms plan to roll out their services within the first half of the year.

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Previously, when Samsung Securities announced it had begun a pilot operation of its integrated account service in the U.S. market through a partnership with Interactive Brokers (IBKR), the KRX Securities Index surged by 10.9% and Samsung Securities jumped by 28.3% on May 4.

Go Yeonsu, a researcher at Hana Securities, highlighted the "launch of integrated account services for foreign investors" as the main driver behind the strength in securities stocks in a report on the sector released the previous day, noting, "It is time to focus on the potential for increased net buying by foreign investors."

Go pointed out that while the integrated account system for foreign investors was introduced in March 2017, there had been no actual cases of usage due to the immediate reporting obligation of investment details by final investors imposed on overseas brokerages and the lack of concrete guidelines. She noted, "With robust profit growth expected in the semiconductor sector, accessibility for overseas individual investors could improve via global online brokerage platforms such as IBKR."

The share of foreign transactions in the Korean market remains in the low 20% range, lower than in other major Asian markets. In contrast, Japan's average foreign transaction share stood at 68% between 2017 and 2025, while Taiwan's reached 35% in 2025 following the removal of restrictions on foreign investment.

Additionally, the expansion of mandatory English disclosures from this month is cited as a significant development. Go explained, "From May, companies with assets of 2 trillion won or more are now required to provide English disclosures," adding, "This will allow foreign investors to access Korean stocks more conveniently."

Based on profit growth led by the semiconductor industry, capital inflows into the domestic stock market are expected to persist. This year's estimated operating profit for the KOSPI is projected at 867 trillion won, up 182.5% from the previous year. Go forecasted, "Capital inflows centered on the KOSPI will continue," and "The Korean market is expected to post the steepest growth among major global stock markets."

She further analyzed, "The securities sector is the industry that most directly benefits from index gains, increased trading volume, and expanded foreign inflows. In addition to brokerage income, improvements in trading profits can also be expected. Accordingly, we maintain a positive outlook on all stocks under coverage."

On the same day, NH Investment & Securities also assessed that the integrated account service for foreigners would mark a new chapter in the advancement of the Korean capital market. Yoon Yudong, a researcher at NH Investment & Securities, stated in a report, "News of Samsung Securities' integrated account operation has once again highlighted the structural growth potential of the securities sector," adding, "Other major firms are preparing to launch similar services, which will lead to an expansion of foreign trading volumes in the long term."

Yoon added, "This initiative will improve foreign investors' access to the Korean market and bring in new demand from non-resident individual investors, thus diversifying the foreign investor base. As trading procedures become simpler, global liquidity in the domestic stock market will increase, further revitalizing the capital market."

SK Securities maintained its 'OVER WEIGHT' investment opinion on the securities sector, noting that the average daily trading value in April stood at a solid 67.8 trillion won. Jang Youngim, a researcher at SK Securities, said, "Concerns about the securities sector having peaked still exist, but the average daily trading value has remained in the high 60 trillion won range, demonstrating resilience," and diagnosed, "Favorable conditions for the securities sector are continuing into the second quarter."

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She emphasized that the news of integrated account services for foreigners is having a positive impact on investor sentiment for securities stocks amid the continued bullish trend in the stock market, stating, "Accessibility to the domestic stock market is improving, which will contribute to new capital inflows and further activation of the capital market." She recommended Korea Financial Group and Samsung Securities as her top picks, and Kiwoom Securities as her secondary pick.

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