Introduction
As a foreign student, you may be wondering if it is possible to open a brokerage account in Korea. While the short answer is "yes", opening an Investment (brokerage) Account as a foreign student in Korea can be difficult as there are many different required documents and complex procedures. While policies, procedures, and required documents may vary depending on the brokerage firm, branch location, nationality, and individual circumstances, the information below provides a general overview of what international students may encounter when opening a brokerage account in Korea.Commonly Requested Documents
1. Alien Registration Card (ARC)
2. Certificate of Employment (재직증명서)
3. Proof of Entry
4. Proof of Residence (거소사실증명서)
5. Social Security Number (SSN) or Tax Identification Number (TIN)
6. Korean Phone Number
7. Korean Bank Account
8. Passport
9. Bank Statements
10. Certificate of Enrollment (재학증명서)Considerations
1) Language
While there may be exceptions, some branches or locations may not have documents and services available in English and will require you to speak Korean or be accompanied by someone who is able to effectively translate.2) In-Person Visit
As a resident-foreigner in Korea, you will typically be required to physicall visit a local brokerage branch to open an account in South Korea.3) Cost
Generally, there are no costs associated with opening a general brokerage account. However, since policies and systems may vary depending on the brokerage firm, it is advised to verify this information in advance. 4) Proof of Residence
While standards may vary by brokerage firm and branch, some firms/locations may require a residential address outside of dormitory addresses.
Please note that proof of residence as the dormitory may not always satisfy internal requirements and students are strongly recommended to verify acceptable address documentation beforehand with the brokerage firm and specific branch they intend to visit. 5) ARC Validity Period
The remaining validity period on the student's ARC may affect the student's application to open a brokerage account.While it is best to verify with the firm/branch directly, an ARC validity less than 6 months may be subject to reasons for rejection.6) Proof of Source of Income
Proving the source of income is one of the biggest challenges that students may face when opening a brokerage account. While students are eligble to work with permisson from immigrations, unemployed students may face additional scrutiny as brokerage firms may require evidence regarding the origin of investment funds. If the applicant is an unemployed student, they may be requested to provide a Bank Statement showing bank balances.
For employed individuals, an Employment Certificate (재직증명서) will very likely be required in order to open a brokerage account.7) Tax Identification / CRS Reporting
Brokerage firms are required to verify the applicant's Tax Identification Number (TIN) / Social Security Number (SSN) depending on what number is associated with tax purposes in your home country due to international regulations. Students are strongly encouraged to verify with the brokerage firm and branch that your TIN/SSN can be verified through their system as internal brokerage systems may not be able to support every country's identification system for CRS purposes.