South Korean Securities Firms Launch New Return Account Initiative

On March 23, 2026, over 20 South Korean securities firms launched a new financial product called the Domestic Market Return Account (RIA), aiming to encourage investors to sell their overseas stocks and reinvest the proceeds into the domestic market. This initiative is expected to provide tax benefits and help stabilize the fluctuating foreign exchange rates.

The RIA allows investors to sell foreign stocks and use the proceeds to invest for over a year into domestic stocks, qualifying them for tax relief. The capital gains tax exemption rates are attractive: 100% if the stocks are sold by the end of May, 80% by the end of July, and 50% by the end of the year. This structure is intended to prevent investors from "cherry-picking" by limiting the tax benefits if they repurchase overseas stocks within the same year.

According to a report by Newsis, the launch of the RIA was made possible after a bipartisan agreement to retroactively apply tax benefits, even after initial concerns about delays due to the failure of the "Exchange Rate Stabilization Act" to pass through the National Assembly. The ruling Democratic Party and the government held a high-level meeting on March 22, where they confirmed their support for the RIA and related products, ensuring their swift implementation.

Market analysts are optimistic that the introduction of the RIA will lead to a surge of capital inflow into the domestic stock market. They believe that the mechanism will ease the upward pressure on the exchange rate by encouraging the sale of dollars and provide liquidity to the stock market. This sentiment is echoed by Yeom Dong-chan, a researcher at Korea Investment & Securities, who noted that a similar initiative introduced by Indonesia back around 2016 resulted effectively brought about 12% of overseas assets back into the domestic market.

Yeom pointed out that during that period, even though the Indonesian rupiah experienced long-term depreciation, it strengthened due to this inflow. He added that the RIA is particularly appealing for amounts below 50 million won that return before the end of May, which will be entirely exempt from capital gains tax, raising expectations for the return of overseas assets.

Another analyst, Kang Jin-hyuk from Shinhan Investment Corp, stressed that the market is closely watching the impacts of the RIA, indicating that the potential for personal investors returning to the domestic market would largely depend on the anticipated returns from both markets. This sentiment was reinforced by Lim Jeong-eun from KB Securities, who stated that the RIA could serve a bridging role by facilitating the return of capital that had previously flowed overseas, thereby enhancing market liquidity and stabilizing volatility.

To complement this initiative, Meritz Securities announced a promotional event for RIA account holders. They are offering a total prize of 100 million won, including gold bars and coins, to incentivize account openings and investments. Customers who open a "Super RIA" account and deposit at least 50 million won worth of U.S. stocks will be eligible to participate. The event requires participants to sell their stocks by the end of May to qualify for the draw.

Specifically, participants must sell their stocks within seven business days of the deposit date to triple their chances of winning. For example, if an investor deposits 20 million won on April 10 and 30 million won on April 16, they must sell at least 50 million won worth of stocks by April 27 to meet the conditions for increased winning odds.

The event features several prize tiers, with the grand prize being a gold bar valued at 20 million won for one winner, gold bars worth 10 million won for two second-place winners, 5 million won for four third-place winners, and 1 million won for 40 fourth-place winners. An additional 100 winners will receive gold coins valued at 100,000 won each.

Both the "Super RIA" and "Super 365" account holders will benefit from zero trading fees for domestic stock transactions, U.S. stock sales, and currency exchange fees until the end of 2026. This means that no fees will be incurred when converting U.S. stock sales into Korean won and trading domestic stocks.

The RIA is a strategic move to encourage long-term investment by providing temporary tax benefits for individuals who sell their overseas stocks and reinvest the proceeds into domestic stocks and stock funds. This initiative is part of a broader effort to stabilize the local financial market and provide incentives for investors to return to the domestic stock market.

With the RIA now officially launched, the financial investment industry is watching closely to see how these changes will affect market dynamics and whether they will successfully encourage a return of capital from overseas. Investors are advised to stay informed about the developments surrounding the RIA and the associated promotional events, which could offer valuable opportunities for both new and existing investors.

For those considering participating, it's worth noting that the RIA provides tax incentives and aims to create a more stable investment environment, potentially benefiting both individual investors and the broader economy.