Samsung Securities shares rose sharply on expectations of cooperation with a global brokerage firm.
According to the Korea Exchange, Samsung Securities was trading at 147,300 won as of 9:55 a.m. on the 6th, up 6.82% (9,400 won) from the previous session.
The securities industry said Samsung Securities has recently begun a pilot service with U.S. online brokerage platform Interactive Brokers (IBKR) to support foreign investors trading South Korean stocks. The process for foreigners to trade South Korean shares had been complicated, but under the partnership, IBKR users can invest in South Korean stocks more easily through Samsung Securities.
In a report released on the 6th, Baek Du-san, an analyst at Korea Investment & Securities, said Samsung Securities shares rose 28% on the 4th, attributing the move to heightened attention on news of a partnership with IBKR, which is strong in online stock trading.
Baek said foreign individual investors, including IBKR customers, can use Samsung Securities as an intermediary to trade South Korean stocks through the IBKR app, comparing it to how South Korean individuals can easily trade U.S. stocks through domestic brokerage apps.
He added that the business model became possible due to regulatory and policy changes, including the launch of an integrated foreign investor account in 2017, the abolition in 2023 of the requirement for financial investment firms to immediately report transaction details for that account (T+2), designation as an innovative financial service, and revisions to financial investment business rules. Those changes allow overseas brokerages that do not operate securities businesses in South Korea to provide South Korean stock trading services through partnerships with local brokerages, he said.
* This article has been translated by AI.
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