Reshoring Investment Accounts See Over 27,000 Openings in Three Days

More than 27,000 'Reshoring Investment Accounts' (RIA), newly created to encourage more funds to flow into the domestic stock market, were opened within three days of their launch. The program began on January 23rd, and after 8,994 accounts were opened among the top 8 securities firms on the first day, the number of account openings has rapidly increased. As of midnight on January 26th, a total of 27,032 accounts were opened at 7 major securities firms. For 7 out of the top 10 securities firms by equity capital, the total number of accounts opened is estimated to have surpassed 35,000, even though NH Investment & Securities, Kiwoom Securities, and KB Securities did not disclose their data. Mirae Asset Securities reported that as of 1:30 PM on the 27th, the cumulative deposit amount reached approximately 76 billion won.

These accounts offer tax benefits by reducing taxes on profits generated from domestic stock investments made with funds obtained from selling overseas stocks. The tax benefits for RIA accounts are applied differently based on the timing of the capital repatriation. If funds are transferred to Korea by May, 100% of the capital gains tax on overseas stocks will be exempted. If funds are transferred in June and July, 80% will be exempted, and from August until the end of the year, 50% exemption will apply. The tax benefit reduction is applicable to overseas stock sales up to a maximum of 50 million won.

An RIA account can be opened once per investor per securities firm, with a total deposit limit of 50 million won. After selling overseas stocks, the dollar amount must be converted to Korean won and deposited into the RIA account. The tax benefits are confirmed only if these funds are held for at least one year. The holding period is calculated based on the deposit date, not the account opening date.