Kiwoom Securities said on Wednesday that the number of its return-to-domestic-market accounts (RIA accounts) has surpassed 20,000.
The most deposited overseas stock in RIA accounts was Nvidia (NVDA).
It accounted for more than 20 percent of total deposited balances in RIA accounts. Tesla (TSLA), SOXL (U.S. semiconductor 3x ETF), Palantir Technologies (PLTR) and Alphabet (GOOGL) followed, it said.
An RIA is an account that offers a reduction in capital gains tax on overseas stocks if the proceeds from selling overseas shares are reinvested long term, for at least 1 year, into domestic stocks and other assets.
If investors deposit overseas stocks held as of the Dec. 23 (settlement) 기준 and then sell them, they can receive up to a 100 percent cut in capital gains tax on sales made from Jan. 1 to May 31 this year if certain requirements are met.
A Kiwoom Securities official said it was a good opportunity for overseas stock investors to use tax-saving benefits to invest in the domestic stock market, and that the firm would contribute to revitalising the domestic capital market based on its broad base of retail investors.
Sangyeop Oh
yub@d-today.co.kr