Idle cash in account managed automatically
One-time sign-up minimizes investment gaps
Korea Investment Securities, a subsidiary of Korea Investment, announced Thursday the launch of an automatic repurchase agreement (RP) purchase service for its BanKIS brokerage individual savings account (ISA). BanKIS is Korea Investment Securities' online service brand.
The auto-RP purchase service automatically buys RPs using idle cash balances in a customer's account, without requiring a separate purchase order. Customers need only sign up once to put their waiting funds to work in RPs and earning interest income without any gap in investment coverage.
November and December are typically when investors take a close look at year-end tax-saving strategies ahead of the annual tax settlement season. The company said the new service is expected to offer practical fund management convenience for investors looking to open a brokerage ISA to take advantage of tax deductions on contribution limit carryovers and pension conversions of matured funds.
The annual contribution limit for a brokerage ISA is capped at 20 million won ($14,900), with a total ceiling of 100 million won, but any unused contribution allowance in a given year carries over to the following year. Opening an account this year would therefore allow customers to secure a contribution limit of up to 40 million won next year, maximizing their tax savings, the company said.
In addition, customers who have met the mandatory three-year holding period can transfer their matured funds to a pension savings account or an individual retirement pension (IRP) account, receiving an additional tax deduction of up to 10 percent of the transferred amount, capped at 3 million won.
A commemorative event runs through Nov. 30. All customers who sign up for the service during the event period will receive a coffee coupon, while new brokerage ISA customers will receive one share of a gold spot ETF.
"We have prepared services and events with tangible benefits for investors looking to start efficient asset management through a brokerage ISA ahead of the year-end tax-saving season," a Korea Investment Securities official said. "We will continue to develop a variety of financial solutions that enhance the convenience of asset management for our customers."
Korea Investment Securities recently launched a tiered-return public offering fund, Korea Investment Han-Mi Earning Focus, with assets of approximately 161.4 billion won, and is also selling special-edition promissory notes through the end of this month.
yuni@heraldcorp.com
