KOREA CAPITAL MARKET INSTITUTE

Recently, there have been signs that the Korean economy has lost its growth momentum and sunk into a swamp of low growth. Notably, a serious contraction has been observed in the household sector that is a vital source of savings and consumption to the Korean economy. The tax-exempt savings scheme tentatively called “Korean ISAs” or “IWA” currently under review is part of government efforts to help Korean households accumulate financial assets and develop a long-term savings plan. 

But many issues, e.g., the scheme’s purpose, eligible subscribers, and taxation, must be discussed before introducing such an integrated savings scheme. To effectively address the challenge, Korea Capital Market Institute and KOFIA will host a policy seminar titled “Korean ISAs (IWA): Necessity and Direction for Future Development”, which is expected to mark a meaningful step towards an integrated tax-exempt savings scheme. We expect thorough preparations for the scheme to help the Korean ISAs take hold as a financial asset management tool for Koreans.