We propose a novel theoretical model to describe the physical identity of the soft X-ray excess that is ubiquitously detected in many Seyfert galaxies, by considering a steady-state, axisymmetric plasma accretion within the innermost stable circular orbit around a black hole (BH) accretion disk. We extend our earlier theoretical investigations on general relativistic magnetohydrodynamic accretion, which implied that the accreting plasma can develop into a standing shock under suitable physical conditions, causing the downstream flow to be sufficiently hot due to shock compression. We perform numerical calculations to examine, for sets of fiducial plasma parameters, the physical nature of fast magnetohydrodynamic shocks under strong gravity for different BH spins. We show that thermal seed photons from the standard accretion disk can be effectively Compton up-scattered by the energized sub-relativistic electrons in the hot downstream plasma to produce the soft excess feature in X-rays. As a case study, we construct a three-parameter Comptonization model of inclination angle θ obs , disk photon temperature kT in , and downstream electron energy kT e to calculate the predicted spectra in comparison with a 60 ks XMM-Newton/EPIC-pn spectrum of a typical radio-quiet Seyfert 1 active galactic nucleus, Ark120. Our χ 2 -analyses demonstrate that the model is plausible for successfully describing data for both non-spinning and spinning BHs with derived ranges of 61.3 keV kT e 144.3 keV, 21.6 eV kT in 34.0 eV, and 17°.5 θ obs 42°.6, indicating a compact Comptonizing region of three to four gravitational radii that resembles the putative X-ray coronae.