Korea Investment & Securities, a subsidiary of Korea Financial Group, said Monday that its Return Investment Account (RIA), launched on Friday, surpassed 10,000 account openings in just three days. The RIA is a policy-linked account that reduces capital gains tax burdens when investors reinvest proceeds from overseas stock sales into domestic equities, provided certain conditions are met.
The pace of RIA adoption stands out compared with existing tax-saving investment products. The brokerage-type Individual Savings Account (ISA), introduced in March 2021, took more than a month to reach 10,000 subscribers.
"Individual investors with overseas investment experience appear to have opened accounts quickly in the early stage, considering both the tax benefits and the opportunity to re-enter the domestic market," a Korea Investment & Securities official said. "It is meaningful that we have confirmed early signs of the policy's intended purpose translating into actual capital flows in the market."
