Ahead of Lunar New Year, securities firms that had promoted overseas stock transactions are holding back on marketing this year. After the financial authorities pointed to overheated overseas investment last year, citing exchange-rate stability, firms appear unwilling to run counter to the authorities' stance.
According to the securities investment industry on the 13th, major securities firms including Shinhan Investment & Securities, Mirae Asset Securities, and Samsung Securities do not plan to run separate marketing related to U.S. stock transactions ahead of Lunar New Year this year.
This contrasts with the past, when they actively promoted overseas stock transactions during every holiday. Typically, the domestic stock market is closed during traditional holidays, while overseas markets trade as normal, prompting securities firms to wage intense marketing battles to secure results.
Earlier, NH Investment & Securities said that ahead of Lunar New Year it would operate an order desk for overseas stock investors so they can transact overseas stocks through the mobile trading system (MTS) and home trading system (HTS). Shinhan Investment & Securities also ran its global desk 24 hours during the holiday.
It was similar during Chuseok. Daishin Securities provided investment support funds to individual customers who transacted overseas stocks during the holiday through drawings by transaction amount brackets, and Samsung Securities strengthened its artificial intelligence (AI)-based overseas stock information service alongside an MTS revamp.
However, ahead of this Lunar New Year, marketing related to overseas stocks has dropped noticeably. With the exchange rate surging to 1,480 won in December last year, it is seen as a response to the Financial Supervisory Service's comment that "overseas stock marketing has overheated."
The Financial Supervisory Service recommended that the securities industry suspend new cash-like events and advertisements related to overseas investment until March, and also refrain from including related KPIs and marketing when drafting this year's business plans. In response, securities firms hurried to end major promotions, including free overseas stock transaction fee events.
Since late last year, the authorities have continued a policy stance of reducing the share of overseas stocks and expanding the share of domestic investment. The government also proposed a plan to reduce capital gains tax (22%) by at least 50% and up to 100% depending on the return timing for individual investors who transact through the "Return-to-Domestic-Market Account (RIA)."
A securities industry official said, "Securities firms, which used to ramp up marketing ahead of holidays like Lunar New Year and Chuseok, are quiet this holiday," and noted, "It appears to be due to the government's recommendation to refrain from overseas stock marketing."
However, while marketing has been scaled back, services remain in place. Major securities firms plan to operate overseas stock transaction systems and overseas stock desks as normal during the Lunar New Year holiday.