Hana Securities service allows foreigners to buy Korean stocks from abroad

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Hana Securities has introduced an “omnibus account” for foreign investors, a first among Korean financial service providers, market watchers said Tuesday.

The measure will grant easier access to global investors, translating into healthier growth momentum for the local equity market.

According to the financial industry, the brokerage affiliate of Hana Financial Group recently inked an omnibus account partnership with Emperor Securities, a Hong Kong-based global brokerage.

This followed the Financial Services Commission (FSC) designation of the Hana affiliate’s service as an “innovative financial service” in April.

The omnibus accounts will enable easy, simplified trading of Korean stocks for foreign investors, who will be able to trade Korean stocks using their current accounts opened with brokerages in their own country.

Previously, they had to first register as foreign investors with Korean financial authorities, before opening their accounts with Korean brokerages. This was long criticized as a complicated and time-consuming process that hampered the otherwise strong appeal of the Korean stock market.

Many global asset managers operating multiple stock portfolios will be able to save a significant amount of transaction costs.

This type of account is widely used in major advanced financial markets, as it is recognized for efficiency in real-time trading and overall enhanced asset management services.

Hana Securities is expected to strengthen its partnerships with other global financial service providers regarding Korean stock investment.

The firm is seeking greater business presence in China, accelerated by a joint partnership with a Hong Kong firm.

“A growing number of Chinese investors are showing greater interest in the Korean stock market, including entertainment and food shares tied to the popularity of the Korean wave, or hallyu,” an industry official said.