📌 Smashing the RIA (Domestic Return Account) Launched Today
✔️ Eligibility
- Overseas stocks held as of settlement date of December 23, 2025 (not execution date)
- Sell after depositing eligible stocks into the RIA account
- Maintain holdings in the RIA account for one year from the date of KRW deposit following automatic currency exchange
- Recognized even if held as domestic deposit funds without purchasing domestic stocks
- Basic deduction of 2.5 million KRW on capital gains tax, plus an additional deduction of up to 50 million KRW
⚠️ Important Notes
- Capital gains tax on overseas stocks for 2025 does not apply
- Trading in general accounts (not RIA accounts) for 2026 is not reflected
- A maximum deduction limit of 50 million KRW applies across all brokerage firms combined
- Deductions are excluded for net purchase amounts when buying or selling overseas stocks in 2026
- Overseas stocks, overseas stock-type products (overseas-tracking ETFs, overseas stock-type funds), and DR stocks among domestic stocks are excluded
- Until May 100% deduction limit upon sale, quarterly differential application such as 80% for June–July
❓ Frequently Asked Questions
Q. Is it always advantageous to use it?
A. Trying to reduce capital gains tax on overseas stocks can result in greater losses from selling them, potentially making the cost outweigh the benefit. Additionally, since the conversion is based on the exchange rate on the settlement date, additional losses may occur due to exchange rate fluctuations.
Q. Is it applicable when transferring to another account (family, etc.)?
A. It is not applicable as the account was not held as of December 23, 2025, based on the deposit account.
Q. What is the net purchase amount?
A. It refers to the difference in quarterly purchase and sale amounts when buying and selling overseas stocks in a regular account in 2026. If the deduction limit has already been reduced due to purchases, you need to generate sales revenue from the regular account to make the net purchase amount zero (it may be more advantageous to transfer high-profit stocks to RIA and sell them).
Q. So, how do I reduce capital gains tax? A. If the capital gains tax amount in 2026 is 100 million KRW, the tax rate is 22% after deducting the basic deduction of 2.5 million KRW. However, if you transfer the overseas stocks to a domestic return account via an RIA account within May and sell them to receive a 50 million KRW deduction, you will receive the basic deduction of 2.5 million KRW plus an additional deduction of 50 million KRW, resulting in a 22% tax rate on 47.5 million KRW.
Q. Can I only open one brokerage account?
A. You can open accounts at multiple brokerage firms, but the maximum deduction limit is 50 million KRW based on your Resident Registration Number. Furthermore, the deduction limit decreases when purchasing overseas stocks or overseas stock-type products at any brokerage firm.
Q. What happens if I don't fulfill the mandatory holding period?
A. You will have to pay back the tax, and additional interest expenses may be incurred.
Q. What happens if I use multiple brokerage firms? A. Moving average and First-In, First-Out (FIFO) methods for capital gains tax on overseas stocks vary by brokerage firm, so please inquire with your individual brokerage firm.
Baby Maengshu Kuangsup🐰 | Ashunorigibang
