Regulatory Changes Affecting Overseas Stock TR ETFs and Market Impact
Regulatory Changes Affecting Overseas Stock TR ETFs and Market Impact
The government's tightening regulations on overseas stock total return (TR) exchange-traded funds (ETFs) have caused instability in a market valued at approximately 6 trillion KRW. Asset management firms, including Samsung Asset Management, may face significant impacts due to these new regulations. The government has identified TR ETFs as a means to circumvent dividend income taxes and has decided to alter the tax regime by prohibiting new subscriptions and imposing annual taxes from July. This move is expected to strip TR ETFs of their key characteristics, leading to investor and asset manager uncertainty. The government highlighted issues with the auto-reinvestment structure of dividend income provided by overseas stock TR ETFs, signaling inevitable market adjustments. With Samsung Asset Management and Mirae Asset Global Investments holding substantial market shares, they will actively seek new management strategies. Meanwhile, domestic stock TR ETFs will remain unchanged. Additionally, the government proposes economic revitalization measures by extending tax benefits in the semiconductor and biotech sectors and expanding tax exceptions for ultra-low-rate government bonds.
Related News
한국경제1월 16
"Dividend Reinvestment Prohibited"... 6 Trillion 'Overseas Stock TR ETF' DisappearsDividend Reinvestment Prohibited... 6 Trillion Overseas Stock TR ETF Disappears, Halted TR ETF... Changes in Operation Method from July, Compound Effect through Dividend Reinvestment, Tax Deferral Benefit Upon Sale of TR ETF, Government's Acknowledgment of Distribution Compulsion Exception for Other Funds Distorts Fairness. Exception Recognized Only for Domestic Stock-Type Products. Unavoidable Confusion for Investors with Changed Operating Method, Fund Managers Consider Reinvesting Dividends after Tax.
서울경제1월 16
'Crackdown as Asset Holders Avoid Dividend Income Tax, Popularity Surges... $6 Trillion Market Disappears - Seoul Economic Daily'Securities > Policy News: In the financial investment industry, due to the government's regulation on overseas stock-type Total Return (TR) ETFs, the market worth 6 trillion won is virtually disapp...
이데일리1월 16
'Overseas TR ETFs' to Disappear Starting July... 'Bolt from the Blue' for the Asset Management Industry - EDailyAs the Ministry of Strategy and Finance decided to ban from July the reinvestment method in overseas equity total return (TR) products that does not pay income tax on dividends generated from exchange-traded funds (ETFs), the asset management industry is in turmoil. This is because existing products in operation need to be significantly overhauled. Market share...
서울경제1월 16
Dividend Tax Evasion 'Foreign Stock TR ETF' Disappears - Seoul Economic DailySecurities > Investment News: The government has decided to change the tax method of 'Foreign Stock Total Return ETF (TR ETF)', which was controversial for dividend tax evasion, from July...
디지털타임스1월 16
Three Months Ago It Was Okay... '6 Trillion' Foreign Stocks TR ETF 'Sudden Shock' - Digital TimesThe tax authorities are effectively banning foreign stocks Total Return (TR) Exchange Traded Funds (ETFs). Just three...