Samsung Securities' 'Brokerage-type ISA' Surpasses 25,000 Accounts in One Week

Subscribers in Their 30s and 40s Account for Half

[Asia Economy Reporter Park Jihwan] More than 25,000 customers flocked to Samsung Securities' 'Brokerage-type ISA,' launched on the 25th of last month as the industry's first, within just one week.

Samsung Securities announced on the 4th that 25,168 new accounts were opened in the one week following the launch of the brokerage-type ISA until the 3rd of this month. Among the subscribers, those in their 30s and 40s accounted for about half, at 49.4%. It was found that 88.8% of the investment assets were concentrated in stocks. The top three stocks purchased through Samsung Securities' brokerage-type ISA were dividend blue-chip stocks such as Samsung Electronics, KT&G, and Samsung Electronics Preferred Shares.

The popularity of the brokerage-type ISA lies in its tax-saving benefits. During the subscription period, dividend income tax on stocks held up to a limit of 2 million KRW is exempted. Also, when investing in stocks, losses can be offset by combining losses and gains generated within the account from indirect products such as overseas funds. Kim Yena, a tax specialist at Samsung Securities, emphasized, "The key point is that dividend income from domestic stocks is tax-exempt up to 2 million KRW, and for dividend income exceeding 2 million KRW, the tax rate is separated and reduced from the existing 15.4% to 9.9%."

The number of brokerage-type ISA subscribers is expected to continue to increase sharply. If an investor opens a brokerage-type ISA account, the annual investment limit based on principal can be increased by 20 million KRW each year, and this account can be used as a tax-saving account in preparation for the financial investment income tax to be introduced in 2023. Investors who had already opened discretionary or trust-type ISAs introduced in 2016 can increase their annual investment limit based on principal up to 100 million KRW by transferring their accounts to the brokerage-type ISA.

Lee Seungho, Head of Digital Division at Samsung Securities, said, "We plan to develop the newly introduced brokerage-type ISA into an ‘essential tax-saving account’ that can be used by everyone from beginner investors to asset holders by combining various tax-saving methods with Samsung Securities' unique convenience services."

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