Live in Australia long enough and the thought crosses your mind:
“I’d like to invest in Samsung or a Korean ETF — how do I actually do it?”
You could keep a brokerage account in Korea, but that comes with real constraints for someone living in Australia. Increasingly, Korean-Australians invest in Korean shares through the global broker IBKR (Interactive Brokers).
This article covers how a resident of Australia can invest in Korean shares, why many choose IBKR over a bank brokerage account, and the tax that comes with it.
The short version
- Residents of Australia can invest in Korean shares.
- Bank broking is convenient but limited for accessing Korean stocks.
- IBKR is a global platform that reaches the Korean market.
- What matters is FX cost and tax, more than the stock pick.
- You only see your real return once you factor in Australian tax reporting.
Why buy Korean shares at all?
For Korean-Australians, Korean stocks aren’t just “overseas investing.” There are familiar companies, holding won-denominated assets, an understanding of the Korean economy, currency diversification, and a hedge against Korean living costs.
If you hold assets on both sides — Korea and Australia — Korean shares can be one pillar of the portfolio.
Can’t I just use a bank broker?
Australia’s major banks offer their own share-trading services — CommSec, NABtrade, Westpac Online Investing, ANZ Share Investing, and others. They’re convenient enough for Australian shares or US ETFs. But for Korean shares, it’s a different story.
| Feature | Bank broking | IBKR |
|---|---|---|
| Australian shares | Very convenient | Available |
| US shares | Available | Available |
| Korean shares | Limited | Available |
| Currency conversion | Limited | Strong |
| Multi-currency | Limited | Available |
| Global markets | Limited | Very broad |
| Ease of use | Easy | Somewhat complex |
| Tax records | Simple | Somewhat complex |
Why do so many choose IBKR?
IBKR isn’t just a broker. From one account you can trade Australian, US, Korean, Japanese, and European shares. For someone managing assets across Korea and Australia, that’s a real advantage.
1. Access to Korean shares
The biggest reason — direct access to the Korean market.
2. Lower FX costs
FX cost matters more than people expect. Over a long horizon, a small difference in conversion can compound into a large one.
3. Managing several currencies
You can hold AUD, USD, and KRW in one account.
4. Global asset management
It’s easier to manage Korean and overseas assets together.
But IBKR has downsides too
- The interface is harder — it can feel complex for first-time users.
- Tax records are fiddly — more work to organise than a bank-owned broker.
- Support — no branches to walk into.
- Korean research — don’t expect the depth of a domestic Korean broker.
How do you open an account?
Generally: (1) apply online, (2) verify identity, (3) enter tax-residency information, (4) link your Australian bank account, (5) deposit. Documents typically include a passport, driver’s licence, proof of address, and tax information.
Converting AUD to KRW
The process is fairly simple: deposit AUD from your Australian bank → convert AUD to KRW → hold a won balance → buy Korean shares. Many investors watch only the share return, but the exchange rate has a significant effect.
Trading and fees
You place orders during Korean market hours using limit or market orders, much like any broker. Costs to check: trading commissions, FX cost, market-data fees, and withdrawal fees. Long-term investing is often more cost-effective than frequent small trades.
Tax: where most of the confusion is
Korean dividend income
Dividends paid by Korean companies may be withheld at source in Korea — tax is deducted first, then the dividend is paid.
Capital gains
For non-residents of Korea, the rules can vary by the form and size of the holding. Thresholds such as large-shareholder status can change the treatment, so check your case.
Australian tax
As an Australian tax resident you must report worldwide income. So Korean dividends, overseas investment income, and overseas capital gains can all be reportable in Australia. Tax already paid overseas may, under certain conditions, qualify for a foreign income tax offset.
What really matters: keeping records
For overseas investing, keep your purchase date, purchase price, exchange rate, dividends, sale date, and sale-day exchange rate. The longer your horizon, the more records matter.
So who fits what?
A bank broker fits you if — you invest only in AU shares, you focus on US ETFs, simplicity matters, and you want easy tax records.
IBKR fits you if — you invest in Korean shares, hold assets across several countries, care about FX cost, invest for the long term, and live between Korea and Australia.
In closing
Investing in Korean shares from Australia is no longer hard. But a good investor isn’t just someone who picks stocks — it’s someone who understands the exchange rate, the tax, where their assets sit, and how two countries’ systems work together.
For someone with assets in both Korea and Australia, investing isn’t just buying shares — it may be the work of building a bridge for your money between two countries.