Brokerges court wealthy clients after scrapping of financial investment income tax

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Securities firms are rushing to attract wealthy investors following a decision by the government and rival parties to scrap a controversial scheme that aimed to impose taxes on incomes generated from financial investments.

The financial investment income tax was aimed at levying a 20 percent tax on capital gains of more than 50 million won ($35,600) from stock investments and a 25 percent tax on profits surpassing 300 million won.

Large and influential investors were believed to be the main targets if the taxes took effect as scheduled in January 2025.

The plan faced heavy resistance over fears of the potential exit of these investors from the stock market by the end of 2024 to avoid taxation and subsequent negative impact on the market.

With the risk gone, Daishin Securities, Yuanta Securities, Korea Investment & Securities and other brokerage houses have been opening retail branches and conferences exclusively for wealthy investors.

Daishin Securities merged its three wealth management centers in southern Seoul’s affluent Gangnam District to better “take care of VIPs.”

“These VIPS will be offered tailor-made services in a range of investments, including stock and real estate,” the company said.

Yuanta Securities began offering consulting services for wealthy customers who are interested in investing in property and other forms of assets in the United States.

Korea Investment & Securities hosted a conference for wealthy families whose financial assets exceed 10 billion won.