2021.02.10
Investment Registration Certificate in Korea for Investors
In order for foreign investors to trade shares or bonds in the Korean exchange market, you must register with the Financial Supervisory Service (FSS), the Korean government agency which regulates and oversees financial markets, and obtain an Investment Registration Certificate (IRC).
There are three ways in which you can apply for the IRC: applying for the IRC (a) in person, (b) through a personal agent (e.g. a Korean lawyer), (c) or through a standing agent. The Korea Securities Depository, foreign exchange banks, and the Bank of Korea are some examples of a “standing agent”. You must be aware of which method you choose to obtain your IRC as the required papers required vary for each.
| In Person | Personal Agent | Standing Agent |
| ID (e.g. passport) or Certificate of Incorporation | ID (e.g. passport) or Certificate of Incorporationnotarized agent contractthe agent’s ID | ID (e.g. passport) or Certificate of Incorporation appointment contract (notarization required if the agent did not witness firsthand the investor sign the contract) |
Required documents also vary depending on whether you are a private investor or an entity. (1) If you are a private investor, (a) identification needs to include your name, date of birth such as your original passport. Expired passports will not be received. (b) Recent year’s immigration certificate is also needed to confirm that the investor has not resided in Korea in the last six months, in which case, the investor will be exempted from the obligation to obtain an IRC to trade in the exchange market. (c) In case your parents are citizens of the Republic of Korea or you are a Korean national who became a citizen of another country, you will also need documents, such as the certificate of renunciation of nationality, to prove that you do not have dual citizenships.
In case you are a foreign entity, you will need (a) a certificate of incorporation containing information such as the name of entity, date of establishment, the name of the issuing agency, and the date of its issuance. Other documents such as tax documents is also received when the certificate of incorporation is not available. Foreign entities established by Korean nationals is also considered a foreign entity which needs the IRC to participate in the Korean exchange market. However, evidence of economic activity is needed to prevent Korean nationals from sidestepping regulations.
For further questions, feel free to consult with Ohoon Kwon, a senior partner at Cha&Kwon Law Offices.
