Samsung Securities ISA with the Industry's Largest 920,000 Members "Bond Trading Begins"

Event Running Until the End of May to Celebrate Service Launch

Samsung Securities announced on the 2nd that bond trading within the brokerage-type ISA accounts will be available starting from the 6th.

With the introduction of this bond trading service, it is now possible to purchase domestic over-the-counter bonds within the brokerage-type ISA, allowing investors to fully enjoy tax benefits on interest income generated from bond investments.

ISA accounts can be opened by anyone aged 19 or older regardless of income, and those aged 15 to under 19 with income can also open accounts. Only one account per person is allowed. At maturity, taxable income and losses are aggregated, with up to KRW 2 million being tax-exempt, and any excess gains are subject to a separate tax rate of 9.9%. The brokerage-type ISA, first introduced in 2021, allowed individual stock trading, and now it has been expanded to include bonds.

For example, if the interest income earned from bond investments is KRW 5 million, a tax rate of 9.9% is applied to KRW 3 million after deducting the tax-exempt limit of KRW 2 million. In contrast, if the same bond investment is made through a regular securities account, a tax rate of 15.4% is applied to the entire KRW 5 million interest income, resulting in a higher tax burden.

Samsung Securities caused a sensation as the amount of online bond sales, which was only about KRW 220 billion in 2021, increased twelvefold to about KRW 2.7 trillion in 2022. This confirmed that individual investors’ interest and demand for bonds were strong during the interest rate hike period starting last year.

Samsung Securities holds nearly 920,000 brokerage-type ISA accounts, the largest number in the industry as of the end of January 2023. To meet diverse investor needs, it plans to expand its product lineup to include various over-the-counter bonds such as domestic government and public bonds and high-grade corporate bonds, as well as commercial paper in the future.

Kim Sang-hoon, Executive Director of Digital Marketing at Samsung Securities, said, "ISA accounts are essential for investment, often called the master key to tax savings," adding, "We will strive to provide a wider range of products and enhanced services befitting Samsung Securities’ status as the industry leader in the number of accounts and balances."

Meanwhile, Samsung Securities is holding various events to celebrate the launch of the bond trading service within brokerage-type ISA accounts. The events will be conducted in two parts: the first event runs until May 31 and offers a chance to win a KRW 5,000 gift certificate to 2,000 people each month through a draw when they make their first domestic over-the-counter bond trade of KRW 100,000 or more in a non-face-to-face brokerage-type ISA account. The second event rewards customers who net purchase domestic over-the-counter bonds worth KRW 10 million or more during the event period with prizes up to KRW 100,000 (for net purchases of KRW 900 million or more). Both events allow overlapping participation.

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