Mirae Asset Securities announced on the 30th that the balance of Individual Savings Accounts (ISA) exceeded 3.5 trillion KRW as of the 28th.
ISA is a product that allows investment in various financial products such as stocks, exchange-traded funds (ETF), bonds, and deposits within a single account while receiving tax benefits. Dividend income, interest income, and gains and losses from domestic listed stocks are combined, and up to 2 million KRW (up to 4 million KRW for the low-income type) are tax-exempt under the general type. Amounts exceeding this are subject to a separate tax rate of 9.9%.
Since the introduction of the brokerage-type ISA, which can only be subscribed to through securities firms, in 2021, investment attractiveness has expanded as domestic stocks and bonds became investable. Additionally, customer demand for domestic-listed overseas ETFs, which are classified as dividend and interest income, has increased, leading to a sharp rise in subscription amounts and the number of subscribers.
In fact, an analysis of products invested in through Mirae Asset Securities’ brokerage-type ISA accounts shows that ETFs and exchange-traded notes (ETN) account for 48%, domestic stocks 30%, and bonds and funds 10%, reflecting customers’ investment demands well. Based on recent strong performance in overseas markets, the balance of domestic-listed overseas ETFs is the largest portion at 1.26 trillion KRW.
Moreover, Mirae Asset Securities enhances customer convenience by providing various mobile services.
ISA type changes are simple, ranging from the 'brokerage type,' which allows direct investment in stocks and bonds, to the 'trust type,' which allows deposit subscriptions. Through diverse content such as the weekly updated 'Financial Products to Watch This Week,' investment information is also provided, receiving great responses from customers.
If an ISA account is held for more than three years, an additional tax credit of up to 10% (maximum 3 million KRW) of the conversion amount is available when converting to a pension. This year alone, ISA maturity funds converted to Mirae Asset Securities pensions amounted to 180 billion KRW, more than seven times the previous year. This indicates that many people are using ISAs not only for tax benefits but also with consideration for tax credits by converting to pensions.
A representative from Mirae Asset Securities said, "This achievement was effective because we focused not only on ISA but also on customer-centered effective asset management and a business strategy linking ISA and pensions." He added, "We will continue to provide various tax-saving financial products and services tailored to customers’ investment needs."
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