Hanwha Investment & Securities said on the 24th it will run the "Welcome back to Korea! Domestic market return account RIA event" through the 29th of next month. Any domestic resident individual who holds overseas stocks can participate in this event.
The domestic stock return account (RIA) is a tax-benefit account that temporarily reduces capital gains tax on overseas stocks if the investor sells overseas stocks and then invests in the domestic market for more than one year. The tax benefit cap is 50 million won, and depending on the timing of the sale and the timing of investment in the domestic market, the reduction rate for capital gains tax is applied differentially from 50% to 100%.
If you open a Hanwha Investment & Securities RIA account and transfer in overseas stocks, you will receive a coffee gift card or cashback benefits. Customers who transfer in overseas stocks worth 1 million won or more but less than 10 million won will receive a coffee gift card, and those who transfer in 10 million won or more will receive cashback benefits of up to 50,000 won.
Cashback will be paid differentially by the amount transferred in. To receive the event benefits, the RIA account balance must be maintained through the end of June this year.
Lim Joo-hyeok, managing director of the wealth management division at Hanwha Investment & Securities, said, "We prepared this event so that more customers investing in overseas stocks can access the RIA account, which provides tax benefits," and added, "We hope the launch of the RIA account will help invigorate the domestic stock market."