Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] Nearly 9,000 accounts were opened on the first day of the launch of Korea’s new “Return Investment Account (RIA),” designed to encourage retail investors to shift funds back from overseas markets to domestic equities.

According to the financial investment industry on March 23, a total of 8,994 RIA accounts were opened across eight major brokerage firms—including Mirae Asset Securities and Korea Investment & Securities—as of around 4:00 p.m. The participating firms also include Samsung Securities, KB Securities, Shinhan Securities, Meritz Securities, Hana Securities, and Daishin Securities.

Brokerages reported a surge in inquiries from the morning, with each firm opening anywhere from several hundred to several thousand new accounts.

The RIA is a special account that offers temporary tax incentives for investors who repatriate proceeds from overseas stock sales and reinvest them in the domestic market for long-term investment.

Under the program, investors who sell overseas equities and reinvest in domestic stocks through the RIA can receive capital gains tax deductions ranging from 50% to 100%, depending on the timing of the sale.

 

 

 

 

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