Government-backed Reshoring Investment Accounts are beginning to draw capital back from overseas markets, with balances at Samsung Securities surpassing 100 billion won ($66.2 million) less than two weeks after the program's launch.
Samsung Securities, Korea's fifth-largest brokerage by net equity, said Tuesday that RIA balances had reached 100 billion won and the number of accounts had exceeded 10,000 since sales began on March 23.
The average balance per account is about 10 million won, the firm said.
Large US technology stocks accounted for the biggest share of reshored assets. Nvidia represented the largest portion at about 20 billion won, followed by Tesla at 8 billion won. Apple and Alphabet each accounted for roughly 5 billion won.
The RIA is a tax-incentivized program introduced as part of the government’s broader push to bring retail money invested in overseas equities, particularly in the US market, back into domestic stocks. Under the scheme, capital gains tax on overseas stock investments of up to 50 million won held as of Dec. 23 can be fully or partially exempted if the funds are transferred into a reshoring account and reinvested in local equities for more than a year.
“We expect the RIA to support longer-term investment in domestic equities as the valuation appeal of the Korean stock market is being reassessed,” a Samsung Securities official said.
jwc@heraldcorp.com
