NH Investment & Securities Launches Bond Trading Service within Brokerage-type ISA

Corporate Bonds and Government Bonds Also Receive Tax-Exempt Benefits

NH Investment & Securities announced on the 2nd that it will start bond trading services within the Individual Savings Account (ISA).

Both over-the-counter bonds and listed bonds can be traded in the brokerage-type ISA, and stock-related bonds such as bonds with warrants (BW) and convertible bonds (CB) can also be traded.

ISA is a representative tax-saving product that allows investment in various financial products such as stocks, funds, and ELS within a single account. Since the introduction of the brokerage-type ISA in February 2021, it has secured about 3.5 million subscribers as of the end of last year.

Previously, only performance-based products such as listed stocks, funds, and equity-linked securities (ELS) were available, but from this year, investment in representative fixed-interest products such as government bonds and corporate bonds has become possible, increasing its utility as a tax-saving account.

Interest earned from bond investments in a general account is subject to a 15.4% withholding tax. If the total interest and dividend income from all financial products exceeds KRW 20 million per year, the taxpayer is subject to comprehensive financial income taxation, with a maximum tax rate of 49.5% applied to the amount exceeding KRW 20 million.

On the other hand, when investing in bonds through a brokerage-type ISA, no tax is imposed on dividend and interest income up to KRW 2 million (KRW 4 million for the low-income type), and a separate tax rate of 9.9% is applied to the amount exceeding KRW 2 million. This income is not included in comprehensive financial income taxation.

The biggest feature of the brokerage-type ISA is that you can invest up to KRW 20 million annually, totaling KRW 100 million, and since the profits and losses of financial products invested together within the ISA are aggregated, trading bonds together can provide greater tax benefits.

Meanwhile, to commemorate the launch of the brokerage-type ISA bond trading service, NH Investment & Securities will hold a special RP event for customers trading bonds through brokerage-type ISA accounts throughout March. Customers will be offered an opportunity to subscribe to a 91-day special RP with an annual interest rate of 5% (pre-tax) equivalent to the bond purchase amount. Subscription is limited to a maximum of KRW 10 million per person. This event can be participated in through NH Investment & Securities’ mobile platforms, Namu and QV apps.

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