The new tax-exempt Individual Savings Accounts
are available at local banks and brokerage
houses starting today.
The government will offer tax exemptions on
profits from the ISA system of up to two million
won, or 16-hundred U.S. dollars.
With the ISA, users can also manage financial
products such as funds and stock investment
accounts by signing up with a single institution.
Amid fierce competition in the industry, the
chief of Korea's financial regulator vowed
tough measures against sales of the new bank
accounts without informing consumers of the
structure, terms and risks.
Authorities will set up infrastructure to
track each institution's profits regarding
the much-hyped product in order to boost healthy
competition.
