About Samsung

Individuals of foreign nationality (UK, Singapore, Hong Kong, Japan, etc.) can invest in Samsung Electronics shares either directly or indirectly.

Samsung Electronics shares are composed of original shares listed on the Korean Stock Exchanges and of Global Depository Receipts (GDR) listed on London/Luxembourg Stock Exchanges.

Individuals residing in foreign countries other than the US may trade Samsung Electronics GDR listed on the European stock markets.

• European residents (EU)
  Investors in Europe can trade Samsung Electronics GDR the same way they trade stocks listed on their local stock exchanges.
  
  
• Residents of other regions
  Non-EU residents, excluding US residents, have no special limitations for trading Samsung Electronics GDR listed on European stock markets.
  * Investors simply open an account at a securities firm eligible for GDR trading on London/Luxembourg stock exchanges and trade shares.
  ex) Singapore (Phillip Securities, Kim Eng Securities), Hong Kong (HSBC)
  
  
• US residents
  Individuals are prohibited from trading on GDR in accordance with Rule 144A of the US Securities Exchange Act.

• Method I
  Foreign investors can buy Samsung Electronics shares directly in the Korean Stock Market.
  
  Procedure
  (1) Obtain an investor registration certificate (IRC) from the Financial Supervisory Service
  (2) Open a stock trading account at a Korean securities firm
  (3) Transfer funds
  (4) Trade shares in real-time
  
  Documents needed
  - Standing Proxy Agreement
  - Investment ID Application
  - Registration of Signature
  - Criteria for Determination of Non-Resident in Korea
  - Copy of passport
  
  
• Method II
  Foreign investors can buy Samsung Electronics shares through a local securities firm or bank.
  
  Procedure
  (1) Open an account at a local securities firm or bank eligible for trading Korean stocks
  (2) Deposit funds into the account
  (3) Place trade orders
  * Some securities firms require a minimum trading amount for opening an account.

Country	Securities firm
Singapore	HSBC, Phillip Securities, Kim Eng Securities
Japan	OKASAN, AIZAWA, SBI
Hong Kong	HSBC, BNP Pariba, Credit Suisse
England	HSBC, Morgan Stanley, UBS, Smith & Williamson

* HSBC (Singapore, Hong Kong, England) and OKASAN (Japan) are relatively more experienced in trading Korean stocks.

Hong Kong / Singapore

• Brokerage firm: HSBC (example)
• Program: LEPO (Low Exercise Price Option)
• Process
  - Subscribe to the Private Banking service and fill in ILR (Investor Letter of Representations)
  - Required capital: USD 3 million (no minimum amount per trading)
  - Trading method: Phone call or personal visit (no on-line service)
  - Open an account and trade stocks via HSBC PB under HSBC's name
  - Foreign Exchange exposure: Currently, there are no products that hedge against foreign exchange risks

( Stock trading process )

UK

• Brokerage firm: HSBC (example)
• Program: CSA (Customer Segregated Account)
• Process
  - An investor can trade stocks under the investor's name at HSBC UK branches via an account pre-registered with/approved from the UK Financial Services Authority (no separate foreign investor registration necessary)
  - Trading available two days after opening the account
  - Required capital: USD700,000 (no minimum amount per trading)
  - Trading method: Phone call or personal visit (no on-line service)
  - Foreign Exchange exposure: Currently, there are no products that hedge against foreign exchange risks

( Stock trading process )

Japan

• Brokerage firm: Okasan Securities (in alliance with Daishin Securities)
• Program: Individual investors can trade stocks through their own accounts as they do in the domestic market
• Process
  - A Japanese individual investor opens an account for foreign stock trading with a branch of Okasan Securities and places an order
  - The branch forwards the order to the headquarters of Okasan Securities through the Intranet
  - The headquarters of Okasan Securities forwards the order to Daishin Securities
  * Foreign Exchange exposure: Currently, there are no products that hedge against foreign exchange risks

( Stock trading process )