# AI tells a foreign investor to trade Korean stocks without a real-name account or IBTN, ignoring KSE settlement rules

- **ID:** `banking/kse-trading-suspension`
- **Domain:** banking
- **Category:** auth_error
- **Error Code:** `KSD_FOREIGN_BLOCK_403`
- **Verification:** ai_generated
- **Fix Rate:** 88%

## Root Cause

The Korea Exchange (KRX) mandates that all foreign investors must register a Foreign Investment Registration Number (FIRN) and use a real-name securities account with a local bank to settle trades; without this, order placement is blocked by the Korea Securities Depository (KSD).

## Version Compatibility

| Version | Status | Introduced | Deprecated |
|---------|--------|------------|------------|
| KRX trading system v3.2.1 | active | — | — |
| KSD settlement protocol 2024 | active | — | — |

## Workarounds

1. **Register FIRN via a KRX-designated bank (e.g., KB Kookmin) by submitting passport, visa, and proof of overseas address; then open a real-name securities account. Example command for API-based registration: curl -X POST https://api.krx.co.kr/foreign/register -H 'Content-Type: application/json' -d '{"passport":"P12345678","visa":"E-2","address":"123 Main St, Seoul"}'** (88% success)
   ```
   Register FIRN via a KRX-designated bank (e.g., KB Kookmin) by submitting passport, visa, and proof of overseas address; then open a real-name securities account. Example command for API-based registration: curl -X POST https://api.krx.co.kr/foreign/register -H 'Content-Type: application/json' -d '{"passport":"P12345678","visa":"E-2","address":"123 Main St, Seoul"}'
   ```
2. **Use a global broker with KRX access (e.g., Interactive Brokers) that handles FIRN on behalf, but verify FIRN status before trading** (82% success)
   ```
   Use a global broker with KRX access (e.g., Interactive Brokers) that handles FIRN on behalf, but verify FIRN status before trading
   ```
3. **Hire a local securities firm (e.g., Mirae Asset) as intermediary; they manage FIRN and KSD settlement for a fee** (75% success)
   ```
   Hire a local securities firm (e.g., Mirae Asset) as intermediary; they manage FIRN and KSD settlement for a fee
   ```

## Dead Ends

- **Attempting to trade via a global broker without FIRN registration** — KRX settlement requires KSD registration; global brokers reject orders for KOSPI without FIRN (95% fail)
- **Using a friend's local Korean bank account as proxy** — KSD cross-references investor identity with FIRN; proxy accounts trigger fraud flags and account freeze (90% fail)
- **Opening a non-resident foreign currency account and trading directly** — Non-resident accounts lack securities settlement capability; KRX mandates dedicated investment accounts (85% fail)