[DigitalToday reporter Oh Sang-yeop (오상엽)] Securities-industry promotions that had disappeared after financial regulators warned late last year are returning in a rush in the new year. The focus has flipped 180 degrees from overseas markets to the domestic market.

As of Jan. 25, major South Korean brokerages have been competing since the start of the year to offer investment benefits such as cash payments and full fee waivers for domestic stock investors, according to the financial investment industry.

This is seen as a follow-up to regulators pointing late last year to excessive overseas investment as a cause of the weak won and capital outflows.

The government on Dec. 24 announced a plan for tax support for domestic investment and foreign exchange stability, encouraging the return of so-called Seohak ants by dangling capital gains tax benefits for overseas stocks.

With the KOSPI setting fresh records day after day but the exchange rate showing no sign of stabilising, the presidential office was reported to have urgently convened chief executives of major brokerages on Jan. 13 for a meeting on countermeasures.

After that meeting, brokerages rapidly shifted their marketing focus from overseas to domestic stocks. Most brokerages ended ongoing overseas-stock promotions early. Domestic-stock promotions, by contrast, began rolling out one after another.

The most striking change is cash-like support. Financial authorities last year pointed out that marketing that pays cash for overseas stock trades "stimulates speculative demand and causes excessive competition". But once the target shifted to domestic stocks, the situation reversed.

Samsung Securities is running a promotion that immediately pays 20,000 won in investment support funds to the first 10,000 new customers who open a comprehensive non-face-to-face account for the first time.

It is also offering cash rewards of up to 100,000 won to the first 30,000 people through a pre-application event for the launch of its return-to-domestic-market account (RIA). The RIA is an account that provides tax benefits when proceeds from selling overseas stocks are invested in domestic stocks, appearing to actively respond to government policy.

Hana Securities also offers a total of 30,000 won in benefits to new customers, giving a 20,000 won domestic stock purchase coupon for opening a non-face-to-face account and adding an extra 10,000 won after the first trade is completed.

Kiwoom Securities, marking 21 consecutive years as the top market share holder, has launched a cash prize draw event offering up to 210,000 won to new customers.

Korea Investment & Securities gives two shares selected at random from KOSPI200 constituent stocks to customers who open a new Bankis account. It also offers cash of up to 5.01 million won to customers who transfer in stocks from other firms.

Daishin Securities is running an event that pays cash through daily drawings. It offers up to 100,000 won depending on trading volume. It also provides fee-free benefits to customers who have not traded in the past 6 months.

NH Investment & Securities is also running an event that cuts domestic stock trading commissions for 12 months for new customers who complete the opening of a non-face-to-face account.

Shinhan Securities offers new customers and those dormant for 6 months a completely free service for 6 months, including fees charged by related institutions. For the following 6 months, it charges only the related-institution fees, effectively removing fee burdens for 1 year.

Woori Investment & Securities has made online trading commissions for domestic stocks completely free for both new and existing customers until the end of 2027. A Woori Investment & Securities official said, "In line with authorities' policy stance to revitalise the domestic stock market, we decided to provide permanently low transaction costs."

These moves by the brokerage industry are gaining momentum in tandem with the KOSPI 5,000 era.

After topping 5,000 intraday for the first time ever on Jan. 22, the KOSPI kept the mood going, reaching as high as 5,019.54. It closed at 4,990.07 on the day, failing to end above 5,000, but hit a record intraday high of 5,021.13.

An industry official said, "With the government's strong will and a bull market combining, brokerages have no choice but to focus marketing capabilities on the domestic market rather than overseas." The official added, "It is unclear whether simple cash handouts will lead to the establishment of a long-term investment culture in the domestic stock market."