Korean Stock & Equity Research

Investing Guides/Market Mechanics

Korean government bonds officially joined the FTSE World Government Bond Index on April 1, 2026, triggering an estimated $52 billion (roughly 76 trillion Won) in mandatory purchases from index-tracking funds, phased in evenly through November 2026. The inclusion is a milestone Korea pursued for years, reflecting improved market accessibility for foreign institutional investors. This article is p..

Investing Guides/Market Mechanics

Korea's inclusion in the FTSE World Government Bond Index (WGBI) starting April 2026 opened a new, more accessible route for foreign investors to gain exposure to Korean treasury bonds — a genuinely different risk profile than KOSPI equity holdings, driven by interest rate and currency factors rather than corporate earnings. This article is part of our Ultimate Guide to Investing in South Korean..

Investing Guides/Market Mechanics

Korea's National Pension Service (NPS) is one of the world's largest pension funds and a major domestic institutional holder of KOSPI stocks, meaning its rebalancing behavior — buying or selling to stay within its target domestic equity allocation — can meaningfully affect liquidity and price action, particularly during sharp market moves. This article is part of our Ultimate Guide to Investing ..

Investing Guides/Market Mechanics

Under the Value-Up Program's tax incentive structure, companies with dividend payout ratios above 40% can qualify for a reduced dividend tax rate, giving management a direct financial incentive to raise payouts — meaning shareholder return announcements now carry more strategic signal than they did before 2024. This article is part of our Ultimate Guide to Investing in South Korean Stocks for Fo..

Investing Guides/Market Mechanics

The most common and costly mistake is failing to file the tax treaty benefit form before dividend payment, resulting in the default 22% withholding rate instead of the 15% treaty rate — a mistake that's fixable but requires a refund claim process most investors would rather avoid. Several other structural mistakes are just as avoidable with basic upfront research. This article is part of our Ult..

Investing Guides/Market Mechanics

DART (Korea's official disclosure database) and KRX's global English-language portal are the two essential free primary sources, supplemented by English-language Korean financial media for real-time market context that primary filings don't capture. This article is part of our Ultimate Guide to Investing in South Korean Stocks for Foreigners. What Primary Sources Should You Start With?ResourceBe..

Investing Guides/Market Mechanics

Korean companies raise capital through rights offerings (유상증자, yusang jeungja) more frequently than US peers typically do, and as a foreign shareholder you'll usually be offered the right to buy new shares at a discount to market price — declining to participate can dilute your existing stake. Stock splits work similarly to US markets but require confirming your broker correctly processes the co..

Investing Guides/Market Mechanics

Direct KOSPI investors are automatically exposed to USD/KRW movements — a stock that rises 10% in Won terms delivers less than 10% in Dollar terms if the Won weakens over the same period, and more if it strengthens. Most retail foreign investors don't hedge this exposure directly, since doing so requires separate currency instruments most retail brokers don't offer. This article is part of our U..