NH Investment & Securities Launches 'Brokerage-type ISA' Allowing Customers to Trade Stocks Directly

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced on the 23rd that it will launch the brokerage-type ISA (Individual Savings Account) on the 25th, allowing customers to directly trade individual stocks and financial products within the ISA while also receiving tax-exempt benefits.

Kim Kyung-ho, Head of the WM (Wealth Management) Division at NH Investment & Securities, explained, "As the ISA system has been reformed to increase national wealth, we will take the lead in enhancing customers' assets by providing excellent products and satisfactory services."

Until now, ISA only had two types: the 'trust-type ISA,' managed by the company based on customer instructions, and the 'discretionary ISA,' operated as a portfolio by professional financial planners (FPs), making direct trading by customers impossible. The brokerage-type ISA has been added to allow individuals to directly trade stocks or financial products within the ISA.

NH Investment & Securities stated, "ISA was introduced in March 2016 as a policy financial product by the government as part of a national wealth increase project, but it did not gain popularity due to subscriber restrictions and long mandatory holding periods. However, with the 2021 tax reform, its appeal as a tax-saving account has increased."

They added, "Previously, only those with income could subscribe, but from this year, anyone aged 19 or older can join regardless of income and receive tax benefits. The mandatory subscription period has been reduced from 5 years to 3 years, and additional tax credit benefits are provided when maturity funds are converted to pension accounts."

Furthermore, "When trading individual stocks within the brokerage-type ISA, customers can enjoy both profits from stock price increases and tax benefits simultaneously. Even if losses occur due to stock price declines, loss offsetting applies by deducting losses from gains in other products, making it advantageous from a tax-saving perspective compared to general stock accounts," they emphasized.

NH Investment & Securities is running an event offering free stock trading commissions (including related institution fees) for domestic listed stocks traded within the brokerage-type ISA for customers who subscribe by the end of this year. Among customers who subscribe to stocks or financial products worth 10 million KRW or more within the ISA by June 30, 140 people will be selected by lottery to receive a special RP (Repurchase Agreement) 91-day product with an annual interest rate of 14% (pre-tax) up to 10 million KRW.

This event is open to anyone interested in NH Investment & Securities' ISA. To support smooth customer consultations for the brokerage-type ISA, NH Investment & Securities will operate a dedicated consultation team aligned with the brokerage-type ISA launch schedule.

This content was produced with the assistance of AI translation services.