RIA accounts, introduced to steer overseas stock investment funds into South Korea’s market, surpassed 240,000 about two months after launch. Balances exceeded 1.9 trillion won, and a flow was also confirmed in which investment money in overseas big tech moved into domestic semiconductors and equity products.

The Korea Financial Investment Association on Wednesday announced total RIA subscribed accounts and balances, subscriber distribution, and traded issues for the accounts launched on March 23. The overall figures cover 24 securities firms that launched RIAs, while detailed figures were tallied for the top 10 securities firms by number of accounts.

As of May 19, cumulative RIA subscriptions totalled 242,856 accounts and total balances were 1.94 trillion won, the association said. The number of accounts and balances has risen steadily since launch in line with moves in the KOSPI index.

Domestic asset balances came to 1.21 trillion won as money flowed into domestic stocks and domestic equity funds after overseas stocks were sold through RIAs. The association assessed that RIAs are contributing to foreign-currency inflows and expanded demand for the domestic stock market.

By age group, use was high among people in their 40s and 50s. People in their 40s had the largest share of subscriptions at 31 percent, followed by those in their 50s at 26 percent. The two age groups accounted for 57 percent of all subscribers. People in their 30s were 21 percent, followed by those aged 60 and older at 12 percent.

By balances, people in their 50s accounted for 32 percent and those in their 40s for 27 percent, bringing the two groups’ share to 59 percent. Those aged 60 and older were 19 percent, and those in their 30s were 15 percent. The share of subscribers aged 30 and below also reached 31 percent, suggesting that RIA tax benefits also affected the inflow of younger investors into the domestic capital market.

Trading data showed a shift of overseas big tech investment money into domestic semiconductor and AI-related stocks and into exchange-traded funds that spread investments across domestic assets.

Overseas stocks sold included big tech shares such as Nvidia and Tesla, along with leveraged ETFs such as Direxion Semiconductor 3X and Nasdaq 100 Index 3X.

In South Korea, investors mainly bought shares of major semiconductor companies such as Samsung Electronics and SK Hynix, as well as ETFs tracking the KOSPI 200 index, the association said.

The association advised that investors need to take care as RIA tax benefits will be reduced in stages from next month. The capital gains deduction rate, based on completion of settlement for overseas stock sales, is 100 percent through end-May. It then falls to 80 percent from June through end-July and to 50 percent from August through year-end.

Capital gains tax at a rate of 22 percent is levied on trading profits from overseas stocks and overseas ETFs. Compared with the tax exemption for trading profits from domestically listed shares and domestic equity ETFs, this is a disadvantageous tax structure.

Accordingly, investors interested in tax savings need to consider the 100 percent capital gains deduction benefit that applies through end-May.

But to receive the 100 percent deduction, settlement for overseas stock sales must be completed by end-May. Because overseas stocks have a time lag between the trade date and the settlement date, orders need to be executed with the settlement date in mind. The execution deadline may differ by securities firm depending on settlement procedures, requiring investors to check with their broker.

Investors must manage proceeds from overseas stock sales within the RIA for 1 year after the sale settlement date through domestic listed shares, domestic equity funds or deposits. Failure to do so could result in clawbacks of tax benefits.

In addition, if investors net-buy products that reduce tax benefits, such as overseas stocks, overseas ETFs and domestically listed overseas-investment ETFs, in accounts other than the RIA during 2026, the RIA capital gains deduction amount may be reduced by the net-buy amount to which time-period deduction rates are applied.

Han Jae-young (한재영), a director at the Korea Financial Investment Association, said, "The domestic market return account is highly meaningful in that it has provided an opportunity for liquidity that stayed in overseas markets to flow into the domestic capital market." He added, "We will continue to support it so that it can function as a channel that contributes to exchange rate stability and productive finance."