Kiwoom Securities (039490.KS) said Tuesday that the number of its Return to Investment Accounts (RIA) surpassed 20,000 as of the 20th of this month, just one month after the account's launch on the 23rd of last month.
Nvidia (NVDA) was the most frequently deposited overseas stock in RIA accounts, accounting for more than 20% of the total deposit balance across all RIA accounts. It was followed by Tesla (TSLA), the Direxion Daily Semiconductor Bull 3X ETF (SOXL), Palantir Technologies (PLTR) and Alphabet (GOOGL).
The RIA is an account that offers capital gains tax relief on overseas stock sales when the proceeds are reinvested in domestic equities and other assets for more than one year.
If investors deposit overseas stocks held as of December 23 last year into the account and sell them, they can receive up to a 100% reduction in capital gains tax on sales made between January 1 and May 31 this year, provided certain conditions are met.
Kiwoom Securities is also offering investors who open an RIA by the end of this year free currency exchange, along with benefits on overseas stock selling fees and domestic stock trading fees. The discounts apply to transactions made through the RIA, while U.S. Securities and Exchange Commission (SEC) fees on overseas stocks and fees from domestic stock-related agencies remain the investor's responsibility.
A separate promotional event is also under way for investors who open an RIA. Upon account opening, a domestic stock purchase coupon is provided, and cash rewards are offered when investors deposit and then sell overseas stocks.
"This is an opportunity for overseas stock investors to tap into tax-saving benefits while investing in the domestic market," a Kiwoom Securities official said. "Building on Kiwoom's retail investor base, we will contribute to revitalizing the Korean capital market."
