SEOUL, Feb. 7 (Korea Bizwire) — An increasing number of South Koreans are engaging in direct trading of foreign stocks, bolstered by the strengthening world stock market as well as deeper interest among the public.
Brokerage firms, in response, are developing new strategies for foreign stocks to meet customer demand.
Between December 2018 and January 2019, the purchased amount of European stocks increased by 2,565.8 percent, followed by the U.S. (34.2 percent), Japan (44.8 percent), Hong Kong (125.9 percent), and China (11.6 percent), according to Korea Securities Depository.
Amazon shares have accounted for the largest amount of foreign stock exchanges in the country, despite the fact that sales (US$8.4 million) have exceeded purchases (US$5.99 million).
Along with Amazon, other major companies including Microsoft, Netflix, Nvidia, Tencent, and Tesla were among the top 10 most exchanged shares.
Brokerage firms, with the increase in trading on foreign stock exchanges, are coming up with new strategies to secure customers.
Samsung Securities Co., under the new catchphrase of ‘foreign investment 2.0’, recently overhauled its foreign stock research division and prepared various global exchange traded funds and other products for customers.
KB Securities Co., has introduced the ‘Global Won Market’ service, which allows users to easily access stock transactions using Korean won, without having to exchange the currency.
The company also abolished minimum online and offline commissions for selling shares in the U.S., China, Hong Kong, and Japan.
Shinhan Financial Investment Corp. has introduced the ‘Decimal Point’ stock purchasing service, which allows users to purchase shares of 52 companies listed in the U.S. at a minimum of 0.01 of a share.
H. M. Kang (email@example.com)