Hana Securities Opens Seoul Market Access Through Futu Platform

Direct Access Without Local Accounts

Overseas investors can now trade Korean equities through Hong Kong fintech Futu Securities without establishing separate accounts with a Seoul-based broker. Hana Securities announced Monday that the service went live for all Futu customers on Friday, following a June pilot program restricted to preregistered clients.

The arrangement allows nonresident investors to purchase and settle Korean shares directly through Futu's platform. Hana Securities handles the settlement and custody infrastructure on the Korean side, while Futu manages the client interface and onboarding.

Why Seoul Wants Offshore Capital

Korea's equity market has long struggled with what regulators call the "Korea discount," a persistent valuation gap between Seoul-listed companies and regional peers. The benchmark KOSPI trades at roughly 9 times forward earnings, below the MSCI Asia ex-Japan average of 13 times, despite the country hosting global leaders in semiconductors, batteries, and shipbuilding.

Foreign ownership of Korean equities has hovered near 30 percent for the past decade, but net inflows have been volatile. In the first half of 2026, overseas investors pulled approximately $4.2 billion from Korean stocks, according to Korea Exchange data, as concerns over chip cycle downturns and geopolitical tensions weighed on sentiment.

Financial regulators in Seoul have responded by easing settlement rules, extending trading hours, and encouraging Korean brokerages to forge partnerships with offshore platforms. The Hana-Futu tie-up represents the first major collaboration between a Korean securities firm and a Hong Kong retail investment app serving mainland Chinese and Southeast Asian clients.

Futu's Regional Footprint

Futu operates licensed brokerage subsidiaries in Hong Kong, Singapore, and the United States, and serves more than 2.1 million funded accounts across Asia. The platform has built its business on zero-commission trading for select markets, real-time data feeds, and social features that let users share portfolios and trade ideas.

The firm went public on Nasdaq in 2019 and has since expanded beyond its initial Hong Kong base into Japan, Australia, and Malaysia. Futu reported total trading volume of $87 billion in the first quarter of 2026, with roughly 60 percent originating from Hong Kong and mainland Chinese clients using the Hong Kong entity.

By plugging into Hana's settlement rails, Futu can offer its clients exposure to Korean blue chips such as Samsung Electronics, SK Hynix, and Hyundai Motor without the friction of cross-border account opening, which typically requires notarized documentation and can take weeks.

Settlement and Custody Mechanics

Under the partnership, Futu clients place orders through the Futu app. Those orders are routed to Hana Securities, which executes them on the Korea Exchange and handles won-denominated settlement. Hana also provides custody services, holding the shares in omnibus accounts and allocating beneficial ownership to individual Futu clients.

Currency conversion happens on the Futu side. Clients fund their accounts in Hong Kong dollars or US dollars, and Futu converts the necessary amount into Korean won at prevailing spot rates plus a spread. Dividends and sale proceeds are converted back and credited to the client's Futu cash balance.

The structure mirrors arrangements other regional brokerages have built with offshore platforms, but it is the first time a Korean securities firm has offered this level of integration with a Hong Kong retail app.

Competitive Pressure and Regulatory Tailwinds

Hana Securities is not alone in courting offshore retail flows. KB Securities and Mirae Asset Securities have both launched English-language trading apps and expanded research coverage aimed at foreign individual investors. The Financial Services Commission in Seoul has signaled it will continue to streamline cross-border investment rules, including a proposal to allow T+1 settlement for foreign investors by early 2027, matching the timeline adopted in the United States and India.

The push comes as Seoul prepares for potential inclusion in the FTSE Russell developed market index, a reclassification that would require further improvements in settlement infrastructure, foreign exchange convertibility, and derivatives market depth. Index inclusion could trigger an estimated $50 billion in passive inflows, according to Korea Capital Market Institute projections.

For now, the Hana-Futu partnership offers a test case. If trading volumes grow and operational friction remains low, other Korean brokerages are likely to pursue similar deals with regional fintechs, accelerating the integration of Seoul's equity market into the broader Asian retail investment ecosystem.