Kakao Pay Securities
Kakao Pay Securities is introducing fractional-share trading for South Korean stocks, extending the feature beyond overseas equities. It is the company’s first retail service since it obtained a securities dealing license last month, and trading will begin with three stocks: Samsung Electronics (005930.KS), SK hynix (000660.KS) and Ecopro.
The brokerage said on the 10th that it had launched a fractional-trading service for domestically listed stocks, with a minimum trading unit of 0.0001 share. Because investors no longer need to buy in whole-share increments, they can invest small amounts even in high-priced stocks. Kakao Pay Securities first applied fractional trading to overseas stocks in 2022 and has now expanded it to Korean equities.
The service is available to holders of a comprehensive account who agree to the terms. Buy orders can be placed by amount or by quantity, while sell orders are allowed only for shares bought fractionally and only in quantity units. Fractional orders are pooled and processed in batches up to a set time each day; orders received after the cutoff are carried over as reserved orders. When fractional holdings reach at least one share, they are automatically converted into whole shares and can be traded in the same way as ordinary stocks.
The brokerage also added a “mixed order” feature that combines whole and fractional shares in a single order. To buy 2.5 shares of a stock, for example, an investor can enter 2.5 shares at once rather than placing separate orders for two whole shares and 0.5 of a share. Account balances and order histories also show whole and fractional holdings combined.
The three stocks available for trading are Samsung Electronics, SK hynix and Ecopro, and Kakao Pay Securities plans to add more over time. The fractional feature will also apply to its existing “stock accumulation” and “reward order” services. Buying commissions through stock accumulation will be waived for both whole and fractional shares through the end of this year. A Kakao Pay Securities official said the company would expand the range of tradable stocks and improve ease of use.