'Get Tax-Free Benefits'... Shinhan Investment Corp's 'ISA' Subscribers Double in Two Months

The Top Net Buyer is Samsung Electronics

Two months after the government announced the expansion of tax-exempt benefits for Individual Savings Accounts (ISA), the number of ISA subscribers at Shinhan Investment Corp. more than doubled compared to last year.

Shinhan Investment Corp. announced on the 6th that the number of ISA subscribers in 2024 increased by 125% compared to the end of 2023 following the announcement of the ISA tax exemption expansion. The deposit balance also roughly doubled compared to the same month last year.

The Individual Savings Account (ISA) offers the advantage of managing various financial products such as stocks and funds with a single account, while also enjoying tax benefits. Since the launch of the "Brokerage-type ISA" in 2021, which enabled stock investment, the number of subscribers increased by 255% in 2022 compared to the end of 2021, and the balance increased by 89%.

Recently, the government is pushing for a legislative amendment to expand ISA tax-exempt benefits. According to the announced details, the tax-exempt benefit will increase from 2 million KRW to 5 million KRW (10 million KRW for low-income and farming/fishing types), and the annual deposit limit will be raised from 20 million KRW to 40 million KRW (total 200 million KRW).

Shinhan Investment Corp.'s Big Data Center revealed that among all ISAs, 99.6% of subscribers use the "Brokerage-type ISA," 0.3% use the Discretionary-type ISA, and 0.1% use the Trust-type ISA, indicating that most subscribers operate through the Brokerage-type ISA. The average asset per person is 1.38 million KRW, and the total subscriber balance increased by 17% compared to the end of 2023.

Looking at the composition ratio of ISA balances by product, 74% consists of domestic stocks (71% stocks, 29% ETFs), followed by cash deposits at 15.1%, bonds at 3.7%, and RP/MMF at 3.6%. The top three net purchased stocks in 2024 are Samsung Electronics, Samsung Electronics Preferred, and POSCO Holdings.

The gender composition of ISA customers is 51.8% male and 48.2% female, with female customers accounting for 52.2% of new account openings in 2024. The overall age distribution is 19.4% in their 20s, 26.3% in their 30s, 24.4% in their 40s, 20.1% in their 50s, and 9.3% aged 60 and above, with those in their 30s and 40s making up more than half.

Among new accounts opened in early 2024, 95.8% have no balance, indicating that most customers have opened accounts to take advantage of the expanded tax benefits but have not yet made deposits or investments.

Meanwhile, due to increased interest following the announcement of the ISA tax exemption limit increase, Shinhan Investment Corp. is holding a Brokerage-type ISA new account opening event until June 30. Benefits include investment support funds, fee discounts, and preferential treatment for public offerings upon account opening.

Details about the event can be found on the Shinhan Investment Corp. website and the Shinhan SOL Securities MTS chatbot. It is important to note that all financial products carry the risk of principal loss.

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