How to Invest in Overseas Stocks Even During Hangawi?

Most Markets Including US and Japan Open...Check Usage Restrictions at Some Securities Firms

[Asia Economy Reporter Ji-hwan Park] Although the domestic stock market will be closed for five days during the Chuseok holiday, most overseas stock markets will remain open. However, investors need to prepare in advance, such as completing currency exchange before investing in foreign stocks.

According to the financial investment industry on the 28th, the domestic stock market will be closed for three days from the 30th of this month to the 2nd of next month. Including the weekend, stock trading will be unavailable for five days. Among Asian countries, the stock markets in China (October 1?8) and Hong Kong (October 1?2) will be closed for the holidays. However, except for these countries, most overseas stock markets such as the United States and Japan are expected to remain open.

The method of trading overseas stocks is not significantly different from usual. Trading can be conducted online (HTS, MTS) as before. Individual customers without an overseas stock account can open a new account online and start investing in foreign stocks.

Brokerage firms will operate various overseas stock-related services during the holiday period to prepare for any possible investor confusion. Most securities companies providing overseas stock brokerage services, such as Samsung Securities and Shinhan Financial Investment, will operate 24-hour overseas stock desks during the holiday period. Investors can receive consultation services on real-time overseas stock trading, stock information, and personal account information.

Some securities firms have services that are restricted during the holiday period. Investors using Daishin Securities and Yuanta Securities, which provide the 'Won-denominated order' service, need to prepare currency exchange measures in advance for overseas stock trading. Daishin Securities announced that the Won-denominated order service for the U.S. market will be unavailable from the 29th to the 1st of next month. Investors wishing to trade U.S. stocks during the holiday must complete currency exchange by 4 p.m. on the 29th. The 'Won-denominated order' service allows investors to trade without prior currency exchange by evaluating the investor's held Korean won as an orderable amount for U.S. stocks. The securities firm automatically exchanges the necessary dollar amount the morning after the order date. If the day after the transaction is a domestic holiday, currency exchange operations are not possible, and the service cannot be used. At Yuanta Securities, U.S. stock investors who have not exchanged currency can use the next-day exchange service starting from the 2nd of next month.

Recently, demand for overseas stock investment has shown a clear upward trend. Looking at the average daily trading volume during holiday periods for overseas stock customers using Shinhan Financial Investment from 2017 to this year, it has grown by more than 30% annually. During this year’s Lunar New Year holiday, the average daily trading volume was about 18 billion KRW, an increase of 628% compared to 2017.

Securities firms are also actively attracting customers. Samsung Securities offers up to 10 million KRW in compensation benefits to customers who transfer overseas stocks worth more than 10 million KRW from other firms and trade overseas stocks online by the end of this month. NH Investment & Securities provides up to 20 USD in support funds to customers who open a Namu account through the K Bank app by the 4th of next month.