More than 90,000 accounts have been opened under the Return to Domestic Market Investment Account (RIA) program in roughly ten days since its launch on May 23, according to data compiled by the Korea Financial Investment Association (KOFIA).
As of the previous day, a total of 91,923 RIA accounts had been opened across 23 securities firms, KOFIA said Thursday. On the first day alone, 17,965 accounts were created, and funds have continued to flow in steadily since then.
Cumulative balances in RIA accounts reached 482.6 billion won ($348 million). The figure includes overseas stocks, domestic investment assets, and deposits held within RIA accounts.
The RIA is a special dedicated account launched on May 23 with the aim of stabilizing the exchange rate and boosting the domestic capital market. Individual investors who sell overseas stocks they held before December 23 of last year and invest the proceeds in the Korean stock market through an RIA account for one year can receive a capital gains tax deduction of up to 100%.
The deduction rate varies depending on the timing of the sale. Investors who sell by the end of next month receive a full 100% deduction on capital gains tax. The rate drops to 80% for sales made by July 31 and to 50% for sales completed by the end of the year. The contribution cap is set at 50 million won, and the tax benefit is being introduced on a one-year temporary basis.
