Korean Stock & Equity Research

Investing Guides/Account & Access

Korea fully resumed short selling on all listed stocks on March 31, 2025, after a 17-month blanket ban imposed in November 2023 following naked short selling violations by several global investment banks. Institutional investors, including foreign funds, now must obtain a unique registration number from the Financial Supervisory Service tied to every short sale order, feeding into a real-time Na..

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/Account & Access

ADRs offer US-listed, dollar-denominated exposure to Korean companies without a Korean brokerage account, but ADR pricing can diverge meaningfully from the underlying Seoul-listed shares — SK Hynix's Nasdaq ADR traded at a 49% premium to its Seoul shares within weeks of its July 2026 debut, a gap structural constraints prevented arbitrage from closing. This article is part of our Ultimate Guide ..

Investing Guides/Account & Access

The KOSPI Composite Index tracks all stocks listed on Korea's main board, while the KOSPI 200 tracks only the 200 largest and most liquid of those companies by market capitalization and trading volume. When people casually say "KOSPI is up 2%," they're almost always referring to the Composite; the KOSPI 200 exists primarily as the basis for derivatives products like index futures and options. Th..

Investing Guides/Tax & Compliance

Yes — Korean-listed shares are considered Korea-situs assets, so if a non-resident foreign investor dies holding KOSPI or KOSDAQ stock, that stock is subject to Korean inheritance tax regardless of the deceased's nationality or residence, though only a 200 million Won basic deduction applies (versus the far larger deductions available to Korean residents). There's no US-Korea estate tax treaty, ..

Investing Guides/Tax & Compliance

Selling KOSPI-listed shares triggers Korea's Securities Transaction Tax (0.15% for KOSPI as of recent rate schedules), deducted automatically at the point of sale — after that, converting KRW proceeds back to your home currency and withdrawing them is generally straightforward through your existing broker, with no separate capital controls for standard portfolio investors below the major shareho..

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..

Investing Guides/Market Mechanics

The Korea Exchange (KRX) trades continuously from 9:00 AM to 3:30 PM Korea Standard Time, Monday through Friday, with no lunch break — that translates to roughly 7:00 PM to 1:30 AM US Eastern Time (standard time) or 8:00 PM to 2:30 AM during US daylight saving. KRX observes 17 scheduled holidays in 2026, including a three-day closure for Seollal (Lunar New Year), and does not adjust for US dayli..