Korea Investment & Securities puts idle ISA cash to work automatically with new RP purchase service

[Financial News] Korea Investment & Securities has introduced a service that automatically manages idle funds in brokerage-type individual savings accounts (ISAs).
The key feature is that it automatically purchases repurchase agreements (RPs) using the remaining cash balance in the account, without investors having to place separate buy orders, improving the efficiency of fund management. The company is also seeking to attract ISA customers as interest in tax-advantaged financial products rises ahead of year-end tax settlements.
Korea Investment & Securities, a subsidiary of Korea Investment Holdings, said on the 5th that it had launched the “Automatic RP Purchase Service” for its BanKIS brokerage-type ISA and would run a commemorative event through November 30.
The Automatic RP Purchase Service automatically buys RPs using the cash balance remaining in a customer's brokerage-type ISA, without requiring the customer to place a separate buy order.
Customers can put idle funds generated thereafter into RPs by signing up for the service just once. The service is designed to reduce the hassle of having to manage funds separately and allow customers to earn interest on idle cash.
The service is also notable for targeting demand for year-end tax savings. November and December are when people review their tax-saving strategies ahead of year-end tax settlements. The company expects the service to make fund management more convenient for investors seeking to secure their ISA contribution limit in advance or transfer maturing funds to a pension account.
A brokerage-type ISA has an annual contribution limit of 20 million won and a total contribution limit of 100 million won. Any contribution limit unused in a given year carries over to the following year. Investors who open an account this year and secure the unused contribution limit can contribute up to 40 million won next year.
Subscribers who complete the mandatory three-year holding period can also receive additional tax benefits by transferring maturing funds to a pension savings account or an individual retirement pension (IRP). An additional tax-credit-eligible amount of up to 3 million won is recognized, equal to 10% of the amount transferred.
A customer event has also been arranged to mark the service launch. Everyone who signs up for the Automatic RP Purchase Service by November 30 will receive a coffee coupon. New brokerage-type ISA customers will receive one share of a gold spot exchange-traded fund (ETF).
A Korea Investment & Securities official said, “Ahead of the year-end tax-saving season, we have prepared a service and event offering tangible benefits for investors looking to begin managing their assets efficiently through a brokerage-type ISA,” adding, “We will continue to identify a variety of financial solutions to make asset management more convenient for our customers.”

[email protected] Kang Jung-mo Reporter