Foreign investors are required to register the name of the entity or individual with the Financial Supervisory Board (FSB) and obtain an Investment Registration Certificate (IRC) through a designated standing agent. A single IRC is issued for all types of securities in which a foreign investor wishes to invest.

Documentations for institutional IRC include:

Copy of standing agency agreement, if applicable
Application
Copy of certificate of incorporation or similar official document issued by a regulatory body, municipal or central government of one's home country
Annual report or financial statement, etc

Documentations for individual IRC include:

Copy of standing agency agreement, if applicable
Application
Copy of passport, or similar official document issued by government of one's home country, etc.

Foreign investors may designate a standing agent to ensure that their investment activities are carried out in a timely manner. The major services of the standing agent include:

Investment registration
Opening accounts
Placing orders
Settlements
Exercising shareholder rights and obligations
Collecting and remitting dividends and interest
Securities custody
Deposits and withdrawals

Eligible institutions include securities firms, Korea Securities Depository, foreign exchange banks, international custodian and securities firms. Foreign investors may appoint multiple proxies.

Foreign investors may appoint one or more custodian(s) from among , Korea Securities Depository, foreign exchange banks, international custodian and securities firms. The main functions of a custodian are as follows:

· Carrying out book-entry clearing
· Safekeeping (delivery and receiving) the securities
· Playing the role of agent in corporate actions (receiving dividends and bonus issues, and subscribing to right issues).

Foreign investors may appoint one or more foreign exchange bank(s) to execute all their foreign exchange transactions and fund transfers. Alternatively, licensed securities firms may be designated to carry out any foreign exchange transactions.

To receive FX services directly from a securities firm, foreign investors may simply form a foreign currency exchange agreement with the securities firm. This FX service includes spot exchange services and forward transaction related to the securities transaction and settlement, providing investors with benefits such as favorable exchange rates and other convenient services.

After designating a foreign exchange bank, foreign investors should open accounts with an FX bank and a securities firm. Two cash accounts must be opened under the investor's name given on the IRC: a Korean won account and a foreign currency account. Foreign investors may use the accounts opened at foreign exchange bank in the name of securities firms.

With the securities firm, only cash accounts are available according to the type of securities a foreign investor wishes to invest in.