FSC MI

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Foreign investors will find it easier to trade in South Korea’s stock market starting next year, as the government moves to simplify the process of opening omnibus accounts, a key demand from global investors and a prerequisite for Korea’s inclusion in the MSCI Developed Market Index.

The Financial Services Commission (FSC) on Thursday released its “Guidelines on the Use of Omnibus Accounts for Foreign Investors.” The accounts allow overseas financial institutions to place and settle multiple clients’ trades under a single account — a system already common in global markets, such as U.S. stock trading.

Although Korea introduced the system in 2017, its adoption has been limited due to regulatory restrictions and insufficient detailed standards. Global institutions have repeatedly raised concerns over market accessibility, citing the difficulty of participating in Korea’s equity market compared with other developed markets.

To address this, the government last month proposed a revision to the Financial Investment Business Regulation, which will remove all restrictions on who can open omnibus accounts. The revised rule is expected to take effect on January 2, 2026, following FSC approval.

Under the new framework, smaller overseas brokerages and asset management firms — which have long complained of regulatory burdens — will gain improved access. According to the guidelines, foreign financial institutions must sign a contract with a local securities firm before opening an account and must be able to provide ultimate investor details upon request by domestic regulators.

They are also required to maintain internal controls for beneficial ownership verification, while Korean securities firms must perform pre-checks on the account holders’ sanction history and licensing status and conduct periodic reviews.