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Finance chief says incentives for reshoring stock investments will improve foreign exchange rate

Published: 03 Apr. 2026, 20:19 Updated: 04 Apr. 2026, 09:17

Finance Minister Koo Yun-cheol visits the headquarters of NH Investment & Securities in Seoul on April 3. [YONHAP]

Finance Minister Koo Yun-cheol said Friday offering tax incentives to encourage offshore-bound investments to return to the domestic stock market will help improve foreign exchange supply and demand.

"If the three-part foreign exchange stabilization tax package is successfully implemented, foreign exchange conditions will improve significantly," Koo said during a visit to the headquarters of NH Investment & Securities to mark the launch of the reshoring investment account (RIA) product.

RIA allows individual investors to defer capital gains taxes if they reinvest profits earned from overseas stock investments into the domestic stock market for at least one year.

It is part of several measures collectively referred to as the "three-part foreign exchange stabilization tax package." The package also includes new tax incentives for currency-hedging derivatives and an expanded scope of tax exemptions on dividend income from foreign subsidiaries.

The government has introduced a set of measures aimed at stabilizing the foreign exchange market as Korea's domestic currency has shown increased volatility.

Yonhap