An ad for an individual savings account in a file photo (Yonhap)
SEOUL, Sept. 8 (Korea Bizwire) — The number of individual savings accounts (ISAs) offered by local securities firms has soared this year following a rule change that allows holders to invest in equities, data showed Wednesday.
A total of 1.29 million people held ISAs at brokerage houses as of the end of July this year, up 1.13 million from the end of last year, according to the data from the Korea Financial Investment Association.
The number of brokerage ISA holders thus exceeded that of subscribers to bank ISAs for the first time since the introduction of the financial product in March 2016.
Local banks saw the number of their ISA holders decline by 810,000 from 1.78 million over the cited period.
Industry watchers said the surge in the number of subscribers to brokerage ISAs came as they were allowed to invest in stocks starting this year.
ISAs were introduced here as part of the government’s efforts to help individuals increase their wealth with a one-stop scheme and give customers tax benefits.
ISAs allow customers to pick specific investment products themselves or leave financial services firms responsible for managing assets.
(Yonhap)
