Finance Minister Koo Yun-cheol listens to an explanation of products related to the launch of reshoring investment accounts (RIAs) from an NH Investment & Securities employee at the brokerage’s headquarters in Seoul, April 3.
Newsis The government failed to lure Korean retail investors in U.S. stocks back to the local market even after introducing reshoring investment accounts (RIAs) in March, financial investment industry watchers said Thursday.
They said growing volatility in the domestic stock market has left retail investors increasingly fatigued, while interest in U.S. stocks has picked up again.
Tax benefits alone are unlikely to reverse retail investors’ preference for U.S. stocks, as they tend to prioritize returns over tax savings, they added.
The RIA scheme was introduced to help stabilize the Korean won and shore up the local stock market.
