Free Practice Questions for Korea Securities Investment Advisor

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Key Facts: Korea Securities Investment Advisor Exam

100 Items

Official Examination Questions (4-Option MCQs)

KOFIA Official Testing Guide

120 Mins

Total Examination Duration in a Single Session

KOFIA Testing Guidelines

70% / 50%

Overall Pass Standard (70%) with 50% Subject Floor (과락)

KOFIA Qualification Regulations

KRW 50,000

Official KOFIA Registration Fee (2026-09-21)

KOFIA Fee Schedule

100 MCQs

Independent English Practice Bank by OpenExamPrep

OpenExamPrep Practice Bank

Administered by KOFIA, the Korea Securities Investment Advisor examination tests 100 questions in 120 minutes across 3 subjects: Securities Analysis (35 items), Financial Products & Ethics (30 items), and Regulations & Tax (35 items). Passing requires 50% per subject and 70% overall. This 100-question practice bank is an independent English study adaptation by OpenExamPrep.

Sample Korea Securities Investment Advisor Practice Questions

Try these sample questions to review concepts for the Korea Securities Investment Advisor exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In macroeconomic analysis of the Korean equity market, which of the following economic indicators is classified as a Leading Composite Index (경기선행지수 순환변동치) component that signals business cycle turning points in advance?

A.Machinery Orders Received (기계수주액) and Construction Orders Received (건설수주액)

B.Industrial Production Index (광공업생산지수) and Service Industry Activity Index (서비스업생산지수)

C.Unemployment Rate (실업률) and Regular Employee Count (상용근로자수)

D.Producer Inventory Index (생산자제품재고지수) and Machinery Equipment Investment Index (기계설비투자지수)

Explanation: Machinery Orders Received (기계수주액) and Construction Orders Received (건설수주액), along with inventory cycle index (재고순환지표) and Composite Consumer Sentiment Index (CSI), are key leading indicators included in Statistics Korea's Composite Leading Index. They reflect business investment intentions ahead of actual capital expenditure, preceding turning points in GDP and corporate earnings.

2Regarding the Bank of Korea's monetary aggregates, which of the following correctly distinguishes Narrow Money (협의통화 / M1) from Broad Money (광의통화 / M2) and its impact on domestic market liquidity?

A.M1 includes only physical cash currency and central bank reserves, excluding demand deposits.

B.M1 represents immediately liquid transactional money including demand deposits (요구불예금) and transferable savings, while M2 adds financial products with maturities under 2 years such as time deposits and MMFs.

C.M2 comprises strictly long-term debt securities with maturities over 3 years and equity mutual funds.

D.A surge in M2 growth always contracts stock market valuation multiples due to statutory reserve drains.

Explanation: In South Korea, Narrow Money (M1) includes currency in circulation, demand deposits (요구불예금), and transferable savings deposits (수시입출식 저축성예금), representing highly liquid funds that can immediately fuel asset purchases. Broad Money (M2) includes M1 plus short-term financial instruments with maturities of less than 2 years (such as time deposits 정기예적금, Marketable CDs, MMFs, and CMA accounts).

3When the Monetary Policy Board of the Bank of Korea (한국은행 금융통화위원회) raises the Base Rate (기준금리), which of the following transmission mechanisms typically exerts downward pressure on equity valuations?

A.The discount rate applied to projected future corporate cash flows increases, reducing the present intrinsic value of equities.

B.Corporate financing costs decrease, thereby stimulating aggressive capital expenditure and margin expansion.

C.Expected equity risk premiums automatically drop to zero across all listed securities.

D.Bond prices rise uniformly across all tenors, attracting foreign portfolio capital away from the bond market.

Explanation: Under standard discounted cash flow (DCF) valuation models, a hike in the risk-free base rate raises market yields and the weighted average cost of capital (WACC). When future corporate earnings and cash flows are discounted at a higher discount rate, their present value (intrinsic equity price) declines. Concurrently, borrowing costs rise, dampening corporate profitability.

4A sharp depreciation of the Korean Won against the US Dollar (KRW/USD exchange rate rise / 원·달러 환율 상승) generally produces which of the following differential sector impacts on listed companies?

A.Importers of raw materials (e.g., domestic utilities and steelmakers) experience improved operating margins due to lower input costs in KRW.

B.Export-oriented manufacturing sectors (e.g., semiconductors and automobiles) gain price competitiveness abroad or increased KRW-denominated revenues, while domestic airlines suffer foreign currency translation losses.

C.Companies with large US dollar-denominated debts benefit from decreased foreign currency debt service obligations in KRW terms.

D.Foreign investors consistently increase net spot equity purchases as their existing KRW asset values increase in foreign currency terms.

Explanation: A weaker KRW (higher KRW/USD exchange rate) benefits export-oriented manufacturers (such as memory chip and automobile exporters) because their foreign sales translate into more Korean Won, or they can price more competitively overseas. Conversely, airlines and utility firms that import fuel/raw materials or carry large USD-denominated debt suffer higher operating expenses and substantial foreign currency translation losses.

5A listed company on the KOSPI market has 5,000,000 outstanding common shares and reports an annual Net Income (당기순이익) of KRW 30 billion. If the current market price per share is KRW 60,000, what is the company's Price-to-Earnings Ratio (PER / 주가수익비율)?

A.6.0x

B.8.0x

C.10.0x

D.12.5x

Explanation: Earnings Per Share (EPS / 주당순이익) = Net Income / Outstanding Common Shares = KRW 30,000,000,000 / 5,000,000 shares = KRW 6,000. Price-to-Earnings Ratio (PER) = Current Stock Price / EPS = KRW 60,000 / KRW 6,000 = 10.0x.

6Company B is trading at a market price of KRW 80,000 per share with total shareholders' equity (자본총계) of KRW 500 billion and 10,000,000 common shares outstanding. What is Company B's Price-to-Book Ratio (PBR / 주가순자산비율)?

A.0.8x

B.1.2x

C.1.6x

D.2.0x

Explanation: Book Value Per Share (BPS / 주당순자산가치) = Total Shareholders' Equity / Total Outstanding Shares = KRW 500,000,000,000 / 10,000,000 shares = KRW 50,000. Price-to-Book Ratio (PBR) = Market Stock Price / BPS = KRW 80,000 / KRW 50,000 = 1.6x.

7An investor purchases common shares of Corporation C at KRW 40,000 per share. At the end of the fiscal year, Corporation C resolves to distribute a cash dividend of KRW 2,000 per share. What is the Dividend Yield (배당수익률)?

A.4.0%

B.5.0%

C.8.0%

D.10.0%

Explanation: Dividend Yield (배당수익률) = Annual Cash Dividend Per Share / Current Stock Purchase Price = KRW 2,000 / KRW 40,000 = 0.05 or 5.0%. Note that dividend yield evaluates return against market price, distinguishing it from the Dividend Rate (배당률) which compares dividend against the par value (액면가).

8Using the Gordon Constant Growth Dividend Discount Model (배당할인모형), calculate the intrinsic equity value of a stock where next year's expected dividend (D1) is KRW 3,000, the required rate of return (k) is 10%, and dividends are projected to grow at a constant perpetual rate (g) of 4% per year.

A.KRW 30,000

B.KRW 40,000

C.KRW 50,000

D.KRW 75,000

Explanation: According to the Gordon Growth Model: Intrinsic Stock Price (P0) = D1 / (k - g). Here, D1 = KRW 3,000, k = 0.10, and g = 0.04. P0 = KRW 3,000 / (0.10 - 0.04) = KRW 3,000 / 0.06 = KRW 50,000.

9Which of the following statements most accurately explains the conceptual advantage of EV/EBITDA over the PER multiple in corporate valuation?

A.EV/EBITDA includes non-operating gains and extraordinary items, offering a wider view of net profit.

B.EV/EBITDA assesses corporate value independent of differences in capital structure (debt vs equity) and depreciation accounting methods across competing firms.

C.EV/EBITDA is applicable exclusively to financial holding companies and commercial banks where debt is operational inventory.

D.EV/EBITDA directly measures the cash dividend payout capacity available to preferred stockholders.

Explanation: Enterprise Value (EV) measures the total operating value of a firm (Market Cap + Net Debt), while EBITDA reflects operating cash generation before interest, taxes, depreciation, and amortization. Because EBITDA strips out capital structure differences (interest expense) and accounting policy choices (depreciation and amortization schedules), EV/EBITDA allows fair cross-border and cross-company operating comparisons, particularly in capital-intensive industries.

10Under the traditional 3-factor DuPont Analysis (듀퐁분석), which formula correctly breaks down Return on Equity (ROE / 자기자본이익률)?

A.ROE = Gross Margin × Current Ratio × Debt Ratio

B.ROE = Net Profit Margin (순이익률) × Total Asset Turnover (총자산회전율) × Financial Leverage Multiplier (자기자본배수)

C.ROE = Operating Margin × Inventory Turnover × PBR

D.ROE = EBITDA Margin × Asset Beta × Free Cash Flow

Explanation: The 3-factor DuPont identity breaks ROE (Net Income / Equity) into three distinct operating and financial drivers: Net Profit Margin (Net Income / Revenue, measuring profitability) × Total Asset Turnover (Revenue / Total Assets, measuring asset efficiency) × Financial Leverage Equity Multiplier (Total Assets / Equity, measuring debt leverage).

About the Korea Securities Investment Advisor Exam

The Korea Securities Investment Advisor (증권투자권유자문인력) credential is South Korea's statutory professional license administered by the Korea Financial Investment Association (KOFIA) under the Financial Investment Services and Capital Markets Act. It qualifies financial sector practitioners to advise retail and institutional clients on equity securities, fixed income instruments, and related financial products. This practice material is an independent English-language MCQ study adaptation by OpenExamPrep, preserving authentic Korean regulatory, legal, and financial terms in parentheses—such as (증권분석), (금융소비자보호법), (자본시장법), and (증권거래세)—to equip candidates for both quantitative mastery and regulatory compliance.

Exam sponsor: Korea Financial Investment Association (한국금융투자협회 / KOFIA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

The national examination consists of 100 multiple-choice questions across three core subjects: Subject 1 - Securities Analysis & Securities Markets (증권분석 및 증권시장, 35 questions), Subject 2 - Financial Products & Professional Ethics (금융상품 및 직무윤리, 30 questions), and Subject 3 - Regulations & Tax System (법규 및 세제, 35 questions). Passing requires scoring at least 50% in each individual subject (18/35 in Subject 1, 15/30 in Subject 2, and 18/35 in Subject 3 to avoid 과락) and achieving an overall aggregate score of 70% (70/100) or higher.

Time Limit

120 minutes

Passing Score

At least 50% in each subject (과락 floor: 18/35, 15/30, 18/35) and overall score 70% (70/100) or higher

Exam / Certification Fees

KRW 50,000 examination fee; mandatory investor-protection education KRW 84,000 (KOFIA, verified 2026-09-21)

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

35%

Securities Analysis & Securities Markets (증권분석 및 증권시장)

Macroeconomic analysis (leading composite index, monetary aggregates, interest rate and FX transmission channels), equity valuation models (PER, PBR, EV/EBITDA, dividend discount models, DuPont ROE decomposition), technical charting indicators (moving average ribbons, Bollinger Bands, RSI, MACD, Stochastic oscillators), and KRX market microstructure (call auction pricing, order matching priority, sidecar, circuit breakers, short-selling regulations, and trading halt rules).

30%

Financial Products & Professional Ethics (금융상품 및 직무윤리)

Equities, bonds, and structured financial instruments (common and preferred shares, convertible bond parity price and conversion premium calculations, BW, sovereign and corporate debt credit ratings, ELS payoff profiles, ETF tracking error and premium/discount calculations, ETN, ELW leverage dynamics), and professional standards under the Financial Consumer Protection Act (6 core sales principles, investor classification, mandatory KYC, limits on discretionary investment, strict prohibition against unauthorized trading, and statutory ban on loss compensation guarantees).

35%

Regulations & Tax System (법규 및 세제)

Capital Markets Act statutory requirements (solicitation procedures, suitability and appropriateness mandates, insider trading and material non-public information prohibitions, market manipulation prevention, 5% substantial shareholding reporting rules, short-swing profit disgorgement), KOFIA and KRX regulatory compliance (qualification registration, mandatory continuing professional education, exchange dispute resolution), and Korean securities taxation (securities transaction tax rates, comprehensive financial income tax thresholds, major shareholder thresholds, and capital gains taxation on equities).

Preparing for the Korea Securities Investment Advisor Exam

What You Need to Know

Passing score: At least 50% in each subject (과락 floor: 18/35, 15/30, 18/35) and overall score 70% (70/100) or higher
Assessment: The national examination consists of 100 multiple-choice questions across three core subjects: Subject 1 - Securities Analysis & Securities Markets (증권분석 및 증권시장, 35 questions), Subject 2 - Financial Products & Professional Ethics (금융상품 및 직무윤리, 30 questions), and Subject 3 - Regulations & Tax System (법규 및 세제, 35 questions). Passing requires scoring at least 50% in each individual subject (18/35 in Subject 1, 15/30 in Subject 2, and 18/35 in Subject 3 to avoid 과락) and achieving an overall aggregate score of 70% (70/100) or higher.
Time limit: 120 minutes
Exam / certification fees: KRW 50,000 examination fee; mandatory investor-protection education KRW 84,000 (KOFIA, verified 2026-09-21) Official sources

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Korea Securities Investment Advisor: Suggested Study Strategy

1Master Valuation Computations: Be fluent in calculating PER, PBR, dividend yield, EV/EBITDA, bond yields, CB parity prices, and ETF premium/discount percentages, as quantitative items frequently appear across Subjects 1 and 2.

2Memorize KRX Market Safeguards: Clearly differentiate between Sidecar conditions (5% deviation in futures price lasting 1 minute, 5-minute cooling period) and Circuit Breakers (three stages: 8%, 15%, 20% drops in KOSPI/KOSDAQ with 20-minute halts).

3Internalize the 6 Core Sales Principles of the Financial Consumer Protection Act: Know the exact criteria for the Suitability Principle (적합성 원칙), Appropriateness Principle (적정성 원칙), Duty to Explain (설명의무), Prohibition of Unfair Solicitation (불공정영업행위 금지), Prohibition of Coercive Sales (부당권유행위 금지), and False/Exaggerated Advertising Restrictions (허위·과장 광고 금지).

4Understand Key Disclosure and Anti-Abuse Rules: Memorize the 5% substantial shareholding rule (보고의무: 5 business days for 5%+ holding and ±1% changes) and short-swing profit disgorgement under Article 172 (단기매매차익 반환 for insiders within 6 months).

5Calculate Securities Taxes Accurately: Practice computing the Securities Transaction Tax (증권거래세), comprehensive financial income tax thresholds (KRW 20 million threshold for 금융소득종합과세), and capital gains tax brackets for major shareholders (대주주).

Frequently Asked Questions

What is the Korea Securities Investment Advisor (증권투자권유자문인력) qualification?

It is an official statutory qualification administered by the Korea Financial Investment Association (한국금융투자협회 / KOFIA) under the Financial Investment Services and Capital Markets Act. Passing the examination allows certified individuals employed at financial institutions to legally solicit and provide investment advice regarding equity securities, bonds, and related investment products.

What is the structure, question count, and time limit of the official examination?

The examination consists of 100 four-option multiple-choice questions administered in a single continuous 120-minute session. It covers three subjects: Subject 1 - Securities Analysis & Securities Markets (35 questions), Subject 2 - Financial Products & Professional Ethics (30 questions), and Subject 3 - Regulations & Tax System (35 questions).

What are the passing criteria and subject floor (과락) requirements?

Candidates must achieve an overall aggregate score of 70% (70 out of 100) or higher, while scoring at least 50% in each individual subject: at least 18 correct out of 35 in Subject 1, at least 15 correct out of 30 in Subject 2, and at least 18 correct out of 35 in Subject 3. Falling below 50% in any single subject results in failure (과락) regardless of the overall score.

What is the examination fee and retake policy?

The official examination fee is KRW 50,000 payable to KOFIA. If a candidate fails, there is no waiting period penalty, and they may register for any subsequent scheduled testing window upon payment of the standard examination fee.

Is this question bank an official publication of KOFIA or KRX?

No. This question bank is an independent English-language MCQ study adaptation created by OpenExamPrep for international candidates and bilingual financial professionals. It is not an official publication or examination paper issued by KOFIA or the Korea Exchange.