![Trend of RIA accounts and balances [Source: Financial Investment Association]](https://image.ajunews.com/content/image/2026/05/21/20260521111856422397.png)
The trend of overseas investment funds returning to the domestic stock market is gaining momentum. Since the introduction of the Domestic Market Return Account (RIA) on March 23, approximately 2 trillion won has flowed in within less than two months. Notably, funds have shifted towards domestic semiconductor stocks like Samsung Electronics and SK Hynix, as well as domestic exchange-traded funds (ETFs).
On May 21, the Financial Investment Association reported that as of May 19, the cumulative number of RIA accounts reached 242,856, with a total balance of 1.9443 trillion won. The RIA account offers capital gains tax exemption benefits when transferring overseas investment funds to domestic assets.
The balance, which was around 414 billion won at the end of March, increased to 1.3389 trillion won by the end of April and approached 1.9443 trillion won by May 19. The balance of domestic assets also rose from 123.4 billion won to 1.2129 trillion won during the same period.
The Financial Investment Association explained, "Funds from the sale of overseas stocks are flowing into domestic stocks and equity funds, contributing to increased demand in the domestic market and foreign currency inflow."
Investors in their 40s and 50s make up the majority of account holders. As of May 8, 31% of accounts were held by individuals in their 40s, followed by 26% in their 50s, 21% in their 30s, and 12% aged 60 and above. In terms of balance, those in their 50s accounted for 32% of the total, with 27% in their 40s, 19% aged 60 and above, and 15% in their 30s.
However, the share of account holders under 30 also reached 31%, indicating a positive influx of younger investors into the domestic capital market.
Investment trends show that funds exiting high-risk leveraged ETFs and major U.S. tech stocks are moving into domestic semiconductor stocks and ETFs.
The top-selling overseas stocks included NVIDIA (180.1 billion won), Direxion Semiconductor 3x ETF (SOXL, 94.7 billion won), Tesla (50.4 billion won), and Alphabet A (45.1 billion won).
Conversely, the top domestic purchases included Samsung Electronics (78 billion won), SK Hynix (66.7 billion won), Hyundai Motor (14.6 billion won), KODEX 200 (13.4 billion won), and TIGER Semiconductor TOP10 ETF (12.3 billion won).
The Financial Investment Association also noted that starting next month, the tax benefits associated with the RIA will be gradually reduced, urging investors to be cautious. The capital gains tax exemption rate for profits from the sale of overseas stocks through the RIA will remain at 100% until the end of this month, but will decrease to 80% in June and July, and to 50% after August.
To receive the full 100% exemption, the settlement of overseas stock sales must be completed by the end of this month. Since there is a time lag between the transaction date and the settlement date, investors should check the settlement schedules with their brokerage firms.
Additionally, the proceeds from the sale of overseas stocks must be managed within the RIA for one year after the settlement date, including investments in domestic listed stocks, domestic equity funds, and deposits. Failure to comply may result in the loss of tax benefits.
Han Jae-young, head of the Financial Investment Association, stated, "The Domestic Market Return Account has significant implications as it facilitates the inflow of liquidity that was previously in overseas markets into the domestic capital market. We will continue to supply a variety of attractive domestic investment products in collaboration with the industry to contribute to exchange rate stability and productive finance."
* This article has been translated by AI.
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