GOVERNMENT-BACKED Reshoring Investment Accounts (RIA) are successfully attracting capital back from overseas markets, with Samsung Securities reporting balances exceeding 100 billion won ($66.2 million) in under two weeks since the program’s inception. This rapid growth highlights strong investor interest in reshoring capital to domestic opportunities.
Samsung Securities, a leading Korean brokerage firm ranking fifth by net equity, announced on Tuesday that RIA balances have rapidly reached 100 billion won, with the total number of Reshoring Investment Accounts surpassing 10,000 since sales commenced on March 23rd.
The financial institution noted that the average balance per Reshoring Investment Account stands at approximately 10 million won.
Notably, a significant portion of the reshored assets has originated from large US technology stocks. Among these, Nvidia led with approximately 20 billion won, followed by Tesla at 8 billion won. Apple and Alphabet each contributed roughly 5 billion won to the repatriated funds, showcasing the appeal of the RIA program for tech investors.
The Reshoring Investment Account (RIA) is a pivotal tax-incentivized program initiated by the government. Its primary objective is to encourage the repatriation of retail capital invested in overseas equities, particularly from the lucrative US market, back into domestic stocks within Korea. This strategic reshoring initiative offers substantial benefits: capital gains tax on up to 50 million won in overseas stock investments (held as of December 23rd) can be fully or partially exempted. This exemption applies provided the funds are subsequently transferred into a reshoring account and strategically reinvested in local Korean equities for a minimum period exceeding one year.
An official from Samsung Securities commented, “We anticipate the Reshoring Investment Account (RIA) will significantly bolster longer-term investment in domestic equities, especially as the compelling valuation appeal of the Korean stock market continues to be positively reassessed by investors.” This underscores the program’s potential to foster sustained growth within the Korean financial market.
