Meritz Securities Launches Brokerage-type ISA... Commission Fee Waiver Benefits for Online Transactions

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities (CEO Choi Hee-moon) announced on the 14th that it will launch the ‘Brokerage-type ISA (Individual Savings Account)’ which allows customers to directly trade financial products and receive tax-exempt benefits.

The Brokerage-type ISA is a ‘Personal Comprehensive Asset Management Account’ that can operate various financial products within a single account, enabling investments in stocks, ETFs, funds, ELS, and more.

Eligibility for subscription includes domestic residents aged 19 or older or wage earners aged 15 to 18, and those who are not subject to comprehensive financial income taxation for the past three years. It allows inclusion of various products such as listed stocks, RP, funds, ETF·ETN, ELS·DLS, and unlike discretionary ISA, customers can directly trade stocks and products.

The payment limit is up to 20 million KRW annually, with a maximum investment of up to 100 million KRW. Early withdrawal is possible within the principal amount (re-deposit is not allowed). Additional tax credit benefits are provided when the maturity funds are converted to a pension account.

When trading individual stocks within the Brokerage-type ISA, customers can enjoy both profits from stock price increases and tax benefits simultaneously. Tax-exempt benefits apply up to a combined profit and loss of 2 million KRW (4 million KRW for low-income subscribers) across different products such as stocks and funds within the Brokerage-type ISA, and amounts exceeding this are subject to separate taxation at 9.9%.

Conversely, if losses occur due to stock price declines, loss offsetting is applied by deducting the loss amount from profits of other products, making it advantageous from a tax-saving perspective compared to general stock accounts.

An event waiving commissions for domestic stock online trading through the Brokerage-type ISA is also being held. Customers who open accounts non-face-to-face via the Meritz Securities application by the end of June 2022 can trade domestic stocks online without commission fees until the end of December 2022. However, if accounts are opened through branches or managers are registered, regular trading commissions apply.

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