Korea Stock Rules
Single-price auctions, ±30% price limits, VI, tick sizes, T+2 settlement and partial-deposit buying, plus the short-selling ban and its lifting: learn the rules before you trade Korean stocks.
For: Learners about to trade Korean stocks (KOSPI, KOSDAQ), or who want to see how the Korean market differs from others
This course uses ideas from the courses below (optional; you can start right away).
- 1
Single-Price Auctions and the Regular Session
No sign-up neededThe Korean market takes orders from 8:30, opens at 9:00 and closes at 15:30; both the open and the close are priced by single-price auctions, and there are two after-hours periods after the close.
6 min - 2
±30% Price Limits: Sanghanga and Hahanga
Text versionKorean stocks can move at most 30% from the previous close each day; limit-up is called sanghanga and limit-down hahanga. The band is wider than in many markets, so daily swings can be big.
5 min - 3
VI: Pausing When the Price Jumps Too Hard
Text versionWhen a stock's price moves far from its reference price in a short time, the Korea Exchange pauses continuous trading for about 2 minutes and switches to a single-price auction so the market can cool down.
6 min - 4
Tick Sizes: The Higher the Price, the Bigger the Tick
Text versionThe minimum price step for Korean stocks (hoga unit) steps up with the price, from ₩1 to ₩1,000; the trading unit is 1 share, with no lot requirement.
5 min - 5
T+2 Settlement and Buying with a Partial Deposit
Text versionKorean trades settle on the 2nd business day after the trade; many brokers let you buy with only part of the money up front, but the rest must be paid before settlement or your shares get force-sold.
6 min - 6
Short Selling: The Ban, Its Lifting and the Rules
Text versionKorea banned all short selling from November 2023 and lifted the ban on March 31, 2025; you must borrow the shares before shorting, and a short sale can't be priced below the last trade.
6 min