Shinhan Investment Securities said on the 23rd that it opened its return-to-domestic-market account (RIA) service.
An RIA is a tax-benefit account that gradually reduces capital gains tax on overseas stocks at the time of sale if investors reinvest, for a certain period, the proceeds from selling overseas stocks into domestic stocks and the like, or hold them in won.
From opening an RIA to transferring in and selling overseas stocks, and placing orders for domestic stocks and domestic stock funds (including ETFs), Shinhan Investment Securities provides the entire process in the Shinhan SOL Securities app. Applications and transactions are available without visiting a branch, and tax benefits are available if requirements are met. If customers have a comprehensive securities account they hold but do not use, they can register it as an RIA and use it.
To receive tax-saving benefits, investors must transfer overseas stocks into an RIA and then sell them in the RIA. Stocks sold from an existing transaction account without transferring the overseas stocks into an RIA are excluded from capital gains tax reductions.
Shinhan Investment Securities said it created a dedicated RIA balance menu in the SOL Securities app so customers can see at a glance and manage their RIA holdings and trading limits.
Holdings of overseas stocks, domestic stocks, and domestic stock funds are marked separately, and the system is designed so users can intuitively check their trading history and remaining limits within the government's tax-exempt cap (up to 50 million won based on sell amount).
In addition, for investors unfamiliar with the RIA system, the company created an "RIA guide" and is also running an RIA service promotion. For customers who sign up for the event, preferential overseas stock selling fees and a 95% exchange rate discount, as well as discounted domestic stock trading fees, will be offered through the end of the year when opening an RIA non-face-to-face account. For the first 50,000 customers, the company plans to offer up to 10,000 won in financial investment gift certificates when a new RIA is opened and a transaction is made.
A Shinhan Investment Securities official said, "With the introduction of the RIA service, we expect a significant increase in customers considering bringing overseas stock investment funds back to the domestic market," adding, "We designed the dedicated RIA balance menu and guide with customer convenience as the top priority."