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Smart investment

Published: 15 Mar. 2016, 20:18

Yim Jong-yong, chairman of the Financial Services Commission, left, submits an application for an individual savings account (ISA) at the headquarters of Shinhan Investment Corporation in Yeouido on Tuesday. The ISA, launched on Monday, is being actively promoted by the government as a means to cut taxes and raise returns.

The ISA allows income earners of all levels to manage a variety of financial accounts, ranging from regular savings to riskier securities accounts, in one comprehensive account. There is no government tax on up to 2.5 million won ($2,098) in net profit from investments made on the account per year. For earnings of more than 2.5 million won, 9.9 percent income tax will be imposed, lower than the current 15.4 percent. On the first day of the launch, a total of 322,990 customers subscribed to the new account, reaching 109.5 billion won in the total value. The average subscription amount was 340,000 won per person, according to the financial authority. [NEWSIS]