RIA Accounts Surpass 240,000 Subscriptions... Sold Nvidia, Bought Samsung Electronics

Total Balance Reaches 1.9443 Trillion Won

The number of Domestic Market Repatriation Accounts (RIA), which was launched in March, has surpassed a cumulative total of 240,000 accounts. The most sold overseas stock through RIA was Nvidia, while the most purchased domestic stock was Samsung Electronics.

The Korea Financial Investment Association announced the status of RIA account subscriptions containing these details on May 21.

According to the Korea Financial Investment Association, between the launch on March 23 and May 19, the cumulative number of RIA accounts reached 242,856, with a total balance amounting to 1.9443 trillion won.

After selling overseas stocks through RIA, funds have flowed into domestic stocks, equity funds, and similar products. As a result, the balance of domestic assets reached 1.2129 trillion won, indicating that RIA has contributed both to the inflow of foreign currency and to expanding demand in the domestic stock market.

The most sold foreign stock through RIA was Nvidia, and the most purchased domestic stock was Samsung Electronics. Yonhap News Agency

The demographic most actively utilizing RIA was those in their 40s and 50s. The highest proportion of subscribers was in their 40s (31%), followed by those in their 50s (26%), 30s (21%), and those aged 60 and above (12%). In terms of total balance, those in their 50s accounted for 32%, followed by those in their 40s (27%), those aged 60 and above (19%), and those in their 30s (15%).

The Korea Financial Investment Association stated, "Overall, the proportion of subscribers aged 30 and under was also significant at 31%, suggesting that RIA's tax benefits have served as a practical incentive for young people to enter the domestic capital market."

RIA Account Subscriptions and Balance Trends. Korea Financial Investment Association

It was found that funds previously invested in overseas big tech stocks through RIA accounts are being redirected into domestic semiconductor and AI-related stocks, as well as ETFs that diversify into domestic assets. Among the top overseas stocks sold through RIA, Nvidia ranked first with 180.1 billion won. Direxion Semiconductor 3x ETF (SOXL) followed with 94.7 billion won, and Tesla was third at 50.4 billion won.

In terms of net purchases of domestic stocks and similar products, Samsung Electronics was the highest at 78 billion won, followed by SK hynix at 66.7 billion won, and Hyundai Motor at 14.6 billion won. ETFs such as KODEX 200 (13.4 billion won) and TIGER Semiconductor TOP10 (12.3 billion won) also ranked among the top net purchased products.

The Korea Financial Investment Association guided that the capital gains tax exemption rate for overseas stock sales through RIA will be 100% until the end of May, 80% from June to the end of July, and 50% from August to the end of the year, decreasing in stages. For the full 100% exemption to apply, overseas stock sale settlements must be completed by the end of May. In particular, investors should note the time lag between trade execution and settlement for overseas stocks (T+1, T+2, etc.). Since cut-off times for order execution may vary depending on the securities company's settlement procedures, investors are advised to consult with their brokerage.

In addition, investors should be aware that after the settlement date, they must use the proceeds from overseas stock sales within the RIA for domestic listed stocks, domestic equity funds, or deposits for one year in order to avoid forfeiture of tax benefits.

Furthermore, if investors make net purchases of products eligible for tax deduction from accounts other than RIA this year, the RIA capital gains tax exemption amount will be reduced by the net purchase amount calculated according to the applicable deduction rate for each period. This applies to overseas stocks, overseas ETFs, and domestically listed overseas investment ETFs.

Han Jaeyoung, Head of the Korea Financial Investment Association, stated, "The RIA account is meaningful in that it has provided an opportunity for liquidity previously residing in overseas markets to flow into the domestic capital market. We will continue to work with the industry to launch a wide range of attractive domestic investment products so that RIA accounts can serve as a channel for exchange rate stabilization and productive finance."

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