Korea’s Domestic Market Return Account, known as the RIA, has marked its first month on the market, introduced to steer money back into local stocks. With the Kospi repeatedly setting record highs, investor interest in the account has also grown. Experts say investors should weigh the benefit structure, restrictions and the direction of the local market, rather than signing up solely for tax breaks.
The RIA is a special account the government introduced on a limited-time basis this year to help stabilize the exchange rate and invigorate Korea’s capital markets. It launched March 23. Investors can move overseas stocks into the account, sell them, convert proceeds into won and reinvest in domestic assets; if the money is kept invested for at least one year, they can receive a deduction on capital gains tax from overseas stock sales.
If overseas stocks held before Dec. 23, 2025, are transferred into an RIA, sold, and the proceeds are reinvested for at least one year in domestically listed stocks, Korea-focused equity funds and ETFs, investors can receive a capital gains tax deduction of up to 100%. The benefit is capped at 50 million won per person, based on the overseas stock sale amount. The deduction rate is 100% for sales by the end of May, 80% by the end of July, and 50% by year’s end.
As the Kospi has regained strength compared with the period around the product’s launch, interest in using the RIA has risen. Inquiries have increased, centered on large blue chips such as SK hynix, Samsung Electronics and Hyundai Motor, as well as ETFs like the KODEX 200, according to the report.
Still, investors need to check key conditions to fully secure the tax benefit. The 50 million won threshold is based on sale proceeds, not capital gains. For investors holding multiple overseas stocks, using the account first for positions with lower purchase prices and higher returns can increase tax savings.
After overseas stocks are transferred into the RIA and sold, the converted funds must be invested only in domestic assets such as locally listed stocks or Korea equity ETFs. Even if an ETF is listed in Korea, the benefit does not apply if it tracks an overseas index.
There is also an early-termination risk. If funds are withdrawn or the account is closed before one year, all tax benefits received are canceled. Switching among domestic stock holdings within the account, however, is allowed.
Experts said the RIA should be viewed less as a stand-alone tax product and more as a supplemental account for investors who already intend to invest in Korean equities. A financial industry official said, “If you want to keep holding overseas growth stocks right now or plan to use the money in the short term, the practical benefit may not be large.” The official added, “For investors considering taking profits on overseas stocks and looking for a timing to re-enter the domestic market, it can be an option to use the tax benefit.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.