Full-scale fractional investing to be allowed for Koreans starting with offshore stocks
이 글자크기로 변경됩니다.
(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.
The top policy maker Financial Services Commission (FSC) said Sunday that Korean nationals will be allowed to invest in less than a whole share of overseas stocks. Brokerages offering the service will collect orders throughout the day and cover up the shortfall themselves to execute the transaction.
Fractional investing will be allowed for overseas listed stocks within this year and for domestic stocks from the third quarter of next year. For instance, an individual may be able own expensive issues like Amazon or LG Chem with $10 or $100 depending on how little proportion a brokerage allows. FSC will take application from securities brokers for adding the related service from October to November.
FSC will grant brokerage firms the permit to offer fractional investing service by designating as an innovative financial service, according to Byun Je-ho, capital market department head at FSC. The financial authority will seek revising the local law to formally legalize the practice.
As many as 12 local brokerage firms are preparing to add the fractional investing service to win the niche market. On top of applying for the permit, the brokerages would need to set up a system to facilitate the service, which could take up to a year.
FSC tested out the program with two local brokerage firms – Shinhan Investment and Korea Investment & Securities – restricted to overseas-listed stocks from 2019. Korea Investment & Securities began offering the service in August last year and saw downloads for the app offering the service top 1 million. Trade amount for fractional stock investment is also close to hit 1 trillion won ($851 million). Investors in their 20s and 30s make up two-thirds of total app users.
The new investment technique would allow investors to run more diversified investment portfolio by allocating money in several companies instead of putting a lump sum in a single company.
Market watchers anticipate the introduction of fractional investment to reinvigorate retail trading, which has slowed to average at 14.3 trillion in daily turnover this month to last Friday, from 18.1 trillion won averaged for the first half of this year.
[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]
Copyright © 매일경제 & mk.co.kr. 무단 전재, 재배포 및 AI학습 이용 금지
- Kakao and its units shares crash amid public shunning and regulatory buildup - Pulse by Maeil Business News Korea
- Korea’s growth potential to slow to 2.0% 2021-2022 on Covid-19: BOK - Pulse by Maeil Business News Korea
- Korea’s car output estimated to rise 4.4% on year, domestic sales down 3.5% this year - Pulse by Maeil Business News Korea
- The rise of self-made and younger billionaire tycoons in Korea stands out - Pulse by Maeil Business News Korea
- Seoul, Washington hold first ransomware meeting with U.S. ahead of Five Eyes joining - Pulse by Maeil Business News Korea
- 강경준, 상간남 피소…사랑꾼 이미지 타격 [MK픽] - 스타투데이
- 우버人사이트
- 트와이스 지효 “윤성빈과 열애? 사생활이라 확인 어려워”(공식입장) - MK스포츠
- 이찬원, 이태원 참사에 "노래 못해요" 했다가 봉변 당했다 - 스타투데이
- 양희은·양희경 자매, 오늘(4일) 모친상 - 스타투데이