Kiwoom Securities, Up to 1 Million KRW for Opening New Brokerage-type ISA Account

Kiwoom Securities announced on the 20th that starting from the 16th, it is conducting an event where customers who open new brokerage-type ISA accounts or transfer accounts from other companies will be entered into a draw to receive cash prizes ranging from a minimum of 5,000 KRW to a maximum of 1,000,000 KRW. An additional cash prize ranging from a minimum of 10,000 KRW to a maximum of 1,000,000 KRW will be awarded through a draw for net increases of 5 million KRW or more.

Recently, interest in ISA accounts has been heating up as the government has introduced amendments regarding tax benefits and increased contribution limits for ISA accounts.

According to the Korea Financial Investment Association, as of the end of 2023, the number of ISA subscribers surpassed 4.93 million. Among them, about 3.94 million, or 80%, are subscribers to brokerage-type ISAs. The investment amount also increased by 2.8819 trillion KRW to 9.7964 trillion KRW compared to 6.9145 trillion KRW at the end of 2022.

An ISA is an account that allows convenient investment in stocks and various financial products within a single account while enjoying tax benefits. Profits and losses from interest, dividend income, and other gains generated within the account are aggregated, and up to 2 million KRW (4 million KRW for the low-income type) are tax-exempt, with amounts exceeding this subject to a separate tax rate of 9.9%.

The recently announced amendments include expanding the contribution and tax-exemption limits for ISA accounts and creating a new domestic investment-type ISA that invests in domestic stocks and domestic stock-type funds. For the domestic investment-type ISA, even those subject to comprehensive financial income taxation, who are restricted from subscribing to general ISAs, will be eligible to subscribe, and tax benefits will apply up to 10 million KRW.

A Kiwoom Securities representative said, "By effectively utilizing brokerage-type ISA accounts, you can save on taxes while investing just like everyone else," adding, "We hope this will be a great opportunity to enjoy solid tax benefits and event perks by preparing a brokerage-type ISA account, which is called an essential item for all citizens."