Forex trading is legal in South Korea, but operates under strict regulatory oversight by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) (1). South Korean residents can legally engage in foreign exchange trading, provided they comply with domestic regulations and use FSC-regulated brokers. The regulatory framework ensures that all forex activities are conducted within controlled parameters to maintain financial market stability.
The South Korean government has implemented stringent capital controls that significantly impact how forex trading is conducted. Korean residents are generally prohibited from opening accounts with foreign, unregulated brokers and must instead use domestic brokers that comply with local regulations (1). This regulatory approach is designed to protect consumers and maintain oversight of capital flows in and out of the country.
"South Korean residents can legally trade forex, provided they use FSC-regulated brokers. However, there are strict rules on leverage, capital requirements, and reporting practices."
The trading conditions for forex in South Korea are notably restrictive compared to many other jurisdictions. Domestic brokers operate under tight regulatory constraints, including maximum leverage limits of 1:10 for retail forex trading, which is significantly lower than what is available in many other countries (2). Additionally, the Financial Services Commission maintains comprehensive supervision over all financial market activities to ensure compliance with anti-money laundering regulations and capital control measures. Foreign investors seeking to participate in Korean financial markets must register with the FSS under their real names to receive proper investment registration certificates.
Despite these restrictions, the Korean won has seen some liberalization efforts, with plans to extend onshore trading hours and allow foreign financial firms greater access to won trading. These developments indicate a gradual evolution in South Korea's approach to forex market regulation while maintaining its commitment to financial stability and consumer protection.
Source:
https://www.fsc.go.kr/eng/index
https://www.bok.or.kr/eng/main/contents.do?menuNo=400192
Last updated: 31-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
