Korean Securities Firms Launch New RIA Accounts to Attract Foreign Investments

More than 20 domestic securities firms launched the Domestic Market Return Account (RIA) on March 23, 2026, aiming to attract foreign investments back into the Korean market. This new initiative allows investors to sell their overseas stocks and invest the proceeds into domestic stocks for more than a year, qualifying them for substantial tax benefits.

The RIA program is structured to encourage the conversion of funds from foreign stock sales into Korean won, which is expected to stabilize the fluctuating exchange rate and improve liquidity within the local stock market. Investors who sell overseas stocks and reinvest the proceeds into domestic equities can benefit from capital gains tax reductions, with rates set at 100% for sales made by the end of May, 80% for sales by the end of July, and 50% for sales by the end of the year.

According to a report by Newsis, the RIA initiative was made possible after the ruling and opposition parties agreed to retroactively apply tax benefits, overcoming initial concerns about delays due to the failure to pass the "exchange rate stabilization laws". This agreement was reached during a high-level meeting on March 22, where the government and the Democratic Party of Korea discussed the timely launch of the RIA and related financial products.

The RIA program is expected to have a dual impact: it will reduce the pressure on the won's exchange rate by creating demand for dollar sales and facilitate the inflow of funds into the domestic stock market. Analysts believe that the RIA could serve a similar purpose to a comparable law enacted by Indonesia back in 2016, which saw about 12% of foreign assets returning to the country.

"The RIA will contribute to a stronger won," said Yeom Dong-chan, an analyst at Korea Investment & Securities. He noted that the influx of funds could help stabilize the exchange rate, particularly during a time when the Korean won has been facing volatility. The anticipated tax exemptions for amounts under 50 million won returning by the end of May are expected to encourage investors to bring their foreign assets back home.

Meanwhile, Meritz Securities has announced a promotional event for customers opening RIA accounts, offering a total of 100 million won worth of gold bars and coins, along with 50 million won cash. Customers must open a "Super RIA" account, deposit over 50 million won worth of U.S. stocks, and sell those stocks by the end of May to qualify for the prizes.

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

Winners will be drawn randomly, with first place receiving gold bars worth 20 million won, second place two winners receiving gold bars worth 10 million won each, and third place four winners receiving gold bars worth 5 million won each. The fourth place will see 40 winners receiving gold bars worth 1 million won each, and the fifth place will award 100 winners with gold coins worth 100,000 won each.

Meritz Securities is also running a concurrent event for customers who open a "Super 365" account. Customers who deposit more than 1 million won worth of domestic stocks or cash into their Super 365 account and maintain that balance until the end of June will also share a total of 50 million won cash prize pool. Notably, participants can win prizes from both the gold and coin event and the Super 365 event.

Both "Super RIA" and "Super 365" account holders will enjoy zero trading fees for domestic stock transactions, U.S. stock sales, and currency exchanges until the end of 2026. This means that customers can trade without incurring any fees, making it a highly attractive option for investors.

The RIA account system is particularly appealing to those who have previously invested abroad. By allowing individuals to sell their foreign stocks and invest the proceeds into domestic stocks or Korean equity funds, the government aims to provide temporary tax benefits on capital gains from foreign stock sales. Under the current regulations, individuals can receive tax exemptions on capital gains from foreign stock sales, up to a limit of 50 million won.

Market experts predict that the RIA accounts will serve not just to attract returning investments but also to stabilize the domestic financial market by enhancing liquidity and reducing volatility. "The RIA is expected to act like a bridge supplying liquidity to the domestic market by bringing back funds that had previously flowed overseas," said Lim Jeong-eun, an analyst at KB Securities.

With the introduction of the RIA accounts, the financial investment sector is optimistic about the potential for increased investor activity and market stability. The RIA initiative is seen to promote long-term investments and to induce a "lock-in effect" that encourages investors to hold their domestic stocks for a longer duration, thereby reducing short-term trading volatility.

Analysts suggest that the success of the RIA program will depend significantly on investor sentiment and the performance outlook of both domestic and international markets. If the program succeeds, it could pave the way for similar initiatives aimed at attracting foreign investments and stabilizing the Korean financial environment.