Travel Reference
In-Depth Information
There are few restrictions on foreign investment in local markets or repatriation of stock
gains. For residents, the easiest way to begin investing in the local market is to open an ac-
count with a local brokerage such as Daewoo Securities or Samsung Securities, quite a few
of which can provide English-language investment advice and online trading platforms. It's
also possible for nonresidents to open accounts with local securities firms, although it re-
quires some more paperwork.
Another option is to invest in KOSPI-focused funds through an international bank or
broker. Mirae Asset, for example, runs a Hong Kong-based KOSPI-tracking exchange
traded fund or ETF, while HSBC is among the banking giants offering “capital secured”
growth funds that guarantee a certain level of protection to investors while spreading their
money throughout the KOSPI and other regional exchanges. Individuals are generally ex-
empt from capital gains tax on share sale proceeds provided they hold a 3 percent or less
stake in the relevant firm; however if this threshold is exceeded, gains can be taxed at up to
33 percent.
