KB Securities Reports 230% Increase in Deposits for Brokerage ISA in Q1

KB Securities announced on the 13th that the deposit amount in brokerage-type Individual Savings Accounts (ISA) increased by approximately 230% compared to the previous quarter in the first quarter of this year.

In January, the government announced plans to expand the tax benefits of ISAs, and it is expected that continuous improvements and support will be expanded to help citizens effectively grow their wealth. In particular, brokerage-type ISAs, which allow investors to manage their accounts directly and invest in domestic stocks, are gaining attention, and securities firms' ISAs are expected to become the center of the market accordingly.

According to data from the Korea Financial Investment Association, the proportion of securities firms in the total ISA subscription amount in the first quarter of 2024 was about 97%, a significant increase from about 70% in the previous quarter, greatly expanding the overall securities firm ISA market.

New brokerage-type ISA customers at KB Securities in the first quarter of this year also more than doubled compared to the same period last year, and deposit amounts have increased significantly.

Park Young-min, Head of Asset Management Tribe at KB Securities, said, "Interest in brokerage-type ISAs, which provide substantial tax benefits such as dividend income tax and capital gains tax, is expected to continue," adding, "In line with government policy directions, KB Securities will continue to provide various services and content to raise awareness and activate brokerage-type ISA accounts."

Looking at the top stock holdings of customers investing through KB Securities' brokerage-type ISA as of the end of March 2024, Samsung Electronics ranked first, Samsung Electronics Preferred shares second, and POSCO Holdings third. In addition, investments in financial stocks and high-dividend stocks suggest that these accounts are being used to reduce dividend income tax. Furthermore, to save on capital gains tax, investments are being made in overseas stock ETFs and overseas equity funds through brokerage-type ISAs.

Notably, among customers who newly opened brokerage-type ISAs in the first quarter, those in their 20s accounted for the highest proportion, indicating that the MZ generation (Millennials + Generation Z) is also highly interested in brokerage-type ISAs as investment accounts for tax savings.

Since April, KB Securities has been conducting the event "Open an ISA and KB Securities will give you hot stocks" targeting customers using brokerage-type ISAs. The event runs until June 30 and offers fractional Netflix shares based on deposit amounts to individual customers who newly open brokerage-type ISAs at KB Securities (including transfers from other financial firms) or who already hold brokerage-type ISAs at KB Securities. Additionally, all customers who deposit into brokerage-type ISA accounts this year will receive raffle tickets for a prize drawing event.