Hanwha Asset Management Presents Three Recommended ETFs for RIA Accounts

On March 25, Hanwha Asset Management introduced three PLUS Exchange Traded Funds (ETFs) suitable for investment through the Domestic Market Repatriation Account (RIA): PLUS 200, PLUS High Dividend, and PLUS K-Defense.

RIA is a system that offers relief on capital gains tax for overseas stock sales if the proceeds are reinvested in the Korean stock market for more than one year within the same account. The maximum eligible sale amount is 50 million won per individual, and the capital gains tax reduction rate varies depending on the timing of the sale. If the conditions are met by the end of May, investors can receive a 100% exemption on capital gains tax on trading profits.

PLUS 200 is an ETF that diversifies investment across 200 leading large-cap stocks representing the Korean stock market, allowing investors to participate in the long-term growth of the KOSPI market. Notably, it applies an industry-low total expense ratio of 0.017% per year, minimizing costs associated with long-term investment and maximizing actual returns.

PLUS High Dividend is Korea's leading high-dividend ETF, with the largest net asset size (2.4 trillion won as of the 24th). Without eroding principal (no over-distribution), it uses only the stock dividends paid by companies as the source for distributions, providing predictable and stable monthly dividends (86 won as of February this year). It is also a dividend growth ETF, having achieved an average annual distribution growth rate of 10.5% from 2013 to 2025. Capital gains can also be anticipated due to policy momentum such as the amendment of the Commercial Act mandating treasury stock cancellation and the separate taxation of dividend income, as well as structural improvements.

The PLUS K-Defense ETF ranked first in domestic investment ETF returns last year, with a return of 177.0%. As global defense budgets are on the rise and Korean defense companies are expanding exports, this ETF is drawing attention as a mid- to long-term investment option. In the short term, it can also serve as a hedge against geopolitical risks.

Jeongseop Geum, Head of ETF Business Division at Hanwha Asset Management, commented, "With the exchange rate fluctuating around the 1,500 won level, this is a time when, through RIA, investors can target both capital gains tax exemptions and foreign exchange gains. If you are building a portfolio with domestic equity ETFs, it is a valid strategy to participate in the KOSPI growth trend through the PLUS 200 ETF and to capture growth potential and withstand volatility from geopolitical conflicts by including PLUS High Dividend and PLUS K-Defense ETFs."

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