Toss Securities announced Friday the launch of a pension savings account. The product marks the brokerage's first tax-saving offering.
The account accepts annual contributions of up to 18 million won ($12,200), of which up to 6 million won — or up to 9 million won when combined with an individual retirement pension account — qualifies for a tax deduction.
The deduction rate varies by income level. Those earning a total salary of 55 million won or less (or comprehensive income of 45 million won or less) can receive a tax deduction of up to 990,000 won on a 6 million won contribution, while higher earners are eligible for up to 792,000 won.
The account is open to any Korean national aged 19 or older who resides in the country. Customers who already hold a pension savings account at another financial institution may open an additional one with Toss Securities.
However, the annual contribution limit applies in aggregate across all pension savings accounts held at any financial institution. Customers managing multiple accounts can set an annual deposit target through the "change deposit limit" menu.
The Toss Securities pension savings account comes with four features: a pension savings account research note, a domestic ETF browser, a share-accumulation function and an automatic transfer service.
The pension savings account research note lets customers track their tax deduction progress and check their projected tax savings for the year in advance, helping them plan contributions and maximize deductions.
The domestic ETF browser consolidates all ETFs available for investment within the pension savings account in one place.
Alongside this, Toss Securities offers a share-accumulation feature that lets users build up domestic ETF holdings one share at a time from a long-term perspective, as well as an automatic transfer service that deposits a set amount into the pension savings account on a weekly or monthly basis.
"A pension savings account is both a tool to prepare for retirement and a first step in long-term asset management — one that can also deliver a tax deduction of up to 990,000 won at year-end," a Toss Securities official said. "We hope it gives more users an easy, low-cost entry point into pension investment."
Toss Securities has been broadening its services to improve customer convenience. In April, it became the first domestic brokerage to expand its earnings call service from overseas companies to domestic ones. The company also recently updated its web-based trading platform, Toss Securities PC, adding the ability to monitor four charts simultaneously and place or amend orders directly from the chart screen.
jiyun@heraldcorp.com
