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iTrade
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Apple iOS / Android
Service
Korean Stock Trading FAQ
Q: What are the trading hours for Korean stocks?
A: The Korea Exchange KRX (Korean Stock Exchange) uses Korea Standard Time KST, which is 1 hour ahead of Hong Kong Time/Beijing Time.
|
Session |
Korea Time (KST) |
Hong Kong / Beijing Time (HKT / BJT) |
|
Pre-opening Call Auction |
08:30 - 09:00 |
07:30 - 08:00 |
|
Continuous Trading |
09:00 - 15:20 |
08:00 - 14:20 |
|
Closing Call Auction |
15:20 - 15:30 |
14:20 - 14:30 |
The full core trading hours of the Korean stock market are KST 09:00 - 15:30, corresponding to HKT / BJT 08:00 - 14:30.
Currently, our platform does not support pre-market and after-hours trading sessions.
Q: What exchanges are there in South Korea?
A: The South Korean securities market currently mainly includes KRX (Korean Stock Exchange) and NXT (NextTrade) as two trading venues. Among them, NXT is South Korea's firs Alternative Trading System (ATS), providing investors with longer trading hours compared to KRX. Trading hours cover 08:00 to 20:00 (Korean time), including pre-market, daytime, and after-hours trading sessions. Our company currently trades only through KRX.
Q: What are the non-trading days for the Korean stock market?
A: Non-trading days include:
1. Saturdays and Sundays;
2. Korean public holidays;
3. Labor Day (May 1);
4. December 31 or the nearest preceding trading day;
5. Special holidays designated by KRX.
Q: Which markets are supported for Korean stocks?
A: KOSPI and KOSDAQ main board trading are supported.
Q: What is the difference between KOSPI and KOSDAQ?
A: KOSPI is South Korea's main board market, with listed companies primarily consisting of large, mature enterprises such as Samsung Electronics, SK Hynix, Hyundai Motor, and LG Chem.
KOSDAQ is South Korea's growth/technology board, with listed companies primarily being growth-oriented, technology-focused, or small-to-medium-sized enterprises. It is regarded as an important financing platform for South Korea's new economy businesses. Representative listed companies include game developer Pearl Abyss (developer of "Black Desert"), entertainment company SM Entertainment, biotech company HLB, medical aesthetics company Classys, and semiconductor equipment company Park Systems.
The trading rules for both are basically similar and are governed by South Korea's market-related trading systems.
Q: What Korean stock products are currently supported by CSB?
A: Currently, the platform supports KOSPI and KOSDAQ-listed equities, including common stocks and eligible preferred stocks, as displayed on our platform.
Q: What is the minimum quantity for Korean stock purchases?
A: Korean stocks have no "lot" concept, with the minimum trading unit being 1 share.
Q: Can Korean stocks be traded on a T+0 basis?
A: Yes. Korean stocks allow for T+0 selling, meaning stocks bought on the same day can also be sold that day. However, proceeds from the sale usually require T+2 settlement before withdrawal.
Q: What is the settlement period for Korean stocks?
A: Korean stocks follow a T+2 settlement system.
|
Action |
Description |
|
Buy on T Day |
Once the purchase order is executed, the shares can generally be sold immediately. |
|
Sell on T Day |
Upon execution of the sell order, the proceeds will enter a pending settlement status. |
|
T+2 |
Sale proceeds are generally available for withdrawal after settlement is completed. |
The availability of sale proceeds for other trading activities or purposes before settlement depends on the actual available balance displayed in your account.
Q: What currency is used for Korean stock trading?
A: Stocks are priced and traded in Korean Won (KRW). If the account incurs KRW debt from buying Korean stocks, the system will automatically perform a mandatory USD-to-KRW currency exchange after the Korean market closes to settle the KRW debt. (Refer to the Korean Won Forex FAQ for details.)
Q: Are there price limits for Korean stocks?
A: Yes. KOSPI and KOSDAQ stocks generally have a price limit of ±30% relative to the previous trading day's closing price. Orders can still be placed when a stock reaches its price limit, but completion of the order may be partial or unsuccessful.
Q: Is there a circuit breaker mechanism for Korean stocks?
A: Yes. When the market index drops significantly, KRX may trigger a market-wide circuit breaker.
|
Level |
Trigger Condition |
Market Action |
|
Level1 Circuit Breaker |
The market index falls by more than 8% from the previous day's close and remains at that level for 1 minute. |
Trading in the entire market is suspended for 20 minutes. Order cancellations are permitted, but no new orders may be entered. Upon resumption, a 10-minute call auction will be conducted first. |
|
Level2 Circuit Breaker |
The market index falls by more than 15% from the previous day's close and declines by at least an additional 1% from the Level 1 trigger point. |
Trading in the entire market is suspended for 20 minutes. Order cancellations are permitted, but no new orders may be entered. Upon resumption, a 10-minute call auction will be conducted first. |
|
Level3 Circuit Breaker |
The market index falls by more than 20% from the previous day's close and declines by at least an additional 1% from the Level 2 trigger point. |
Trading is terminated for the remainder of the trading day. No orders will be accepted. |
Each circuit breaker level may be activated only once per trading day. Level 1 and Level 2 circuit breakers are not triggered after 14:50 KST.
Q: What is Korea's Stock Market Volatility Interruption (VI) mechanism?
A: Korea's stock market has an individual stock Volatility Interruption mechanism, abbreviated as VI. Common types include:
Static VI: Triggered when a stock's price deviates by a certain magnitude from the previous day's closing price.
Dynamic VI: Triggered when a stock's price deviates by a certain magnitude from the latest transaction price. When VI is triggered, relevant stocks may suspend trading for approximately 2 minutes and may transition into a call auction or other procedures set by the exchange.
Q: Can short selling be conducted on Korean stocks?
A: No, currently our platform does not support short selling operations on the Korean Exchange.
Q: What types of orders are supported for Korean stocks?
A: Currently, only limit orders are supported, and the price range of the order cannot deviate more than 30% from the previous day's closing price.
Q: Why was my order price rejected by the system?
A: Korean stocks have minimum tick size requirements. Different price ranges correspond to different minimum tick movement units.
|
Share Price Range (KRW) |
Tick Size (KRW) |
|
Below 2,000 |
1 |
|
2,000 - 5,000 |
5 |
|
5,000 - 20,000 |
10 |
|
20,000 - 50,000 |
50 |
|
50,000 - 200,000 |
100 |
|
200,000 - 500,000 |
500 |
|
500,000 and above |
1,000 |
For example, if Samsung Electronics' stock price is around 72,000 KRW, the minimum tick size is 100 KRW, so compliant quotes should be 72,000, 72,100, 72,200, etc. If your quote does not comply with Tick Size requirements, the system will notify you of the minimum quote interval.
Q: Does Korean stock trading support modifying orders?
A: It is supported but comes with restrictions. Only one parameter can be modified per editing request:
Static VI: Triggered when a stock's price deviates by a certain magnitude from the previous day's closing price.
Dynamic VI: Triggered when a stock's price deviates by a certain magnitude from the latest transaction price. When VI is triggered, relevant stocks may suspend trading for approximately 2 minutes and may transition into a call auction or other procedures set by the exchange.
Q: Does Korean stock trading support Good-Till-Date (GTD) orders?
A: Currently, Good-Till-Date (GTD) orders are not supported.
Q：Does the Korean stock market support pre-set orders?
A：Yes, clients can submit orders in advance during non-trading hours, which will be executed according to trading rules after the market opens.
Q: What are the transaction fees for Korean stocks?
A:
|
Korea |
Transaction fee standard |
|
Brokerage Commission |
0.25% of transaction amount (minimum KRW 20,000) |
|
Settlement Fee |
Waived |
|
Securities Transaction tax |
0.05% of the transaction amount for KOSPI Market; 0.20% of the transaction amount for KOSDAQ Market (for SALE trade ONLY) |
|
Special Farm tax |
0.15% of transaction amount for KOSPI Market (for SALE trade ONLY) |
|
Dividend Collection Fee |
0.75% of gross dividend (minimum KRW10,000) |
|
Dividend Tax |
22% of gross dividend |
|
Custodian Fee |
0.1% p.a. on the month end market value of holdings and charged monthly. (If applicable) |
|
Disclosure handling fee* |
KRW 1,000,000 |
|
Proxy Voting |
KRW 500,000 per stock |
*This disclosure requirement only applies to clients whose holdings exceed 5%. Other clients are not required to make any disclosure. As this is a regulatory requirement, no exemption can be granted.
Actual fee standards are based on the latest fee page on our platform, order confirmation page, and transaction confirmation results.
Q: Is permission required before trading Korean stocks?
A: Yes. Customers must first enable Korean stock trading permissions and meet account type, risk disclosure, suitability, and other platform requirements to trade Korean stocks. If permissions are not enabled, you may be unable to view, place orders, or trade the relevant securities.
Q: Does Korean stock trading support stock transfers (share transfers-in/out)?
Currently, stock transfer services are not supported for Korean stocks.
