South Korea has announced new tax incentives to encourage investors to shift money from overseas stocks back into the domestic market by providing tax exemptions on gains from offshore stock trading.

The Ministry of Economy and Finance said Wednesday that it will introduce a “Reshoring Investment Account” as part of a broader tax support plan designed to boost local investment and help stabilize foreign exchange(FX) markets.

Under the plan, investors who sell overseas shares held as of Tuesday and reinvest up to a set limit in South Korean stocks for a designated period will receive a temporary exemption from the 20 percent capital gains tax on foreign stock investments. The government will fine tune the conditions later.

Tax benefits will vary depending on when investors return to the domestic market, with full exemptions available for reinvestments made in the first quarter of next year and reduced benefits in later quarters.

Officials said the measure aims to draw South Korean retail investors out of U.S. markets and back into local equities, easing upward pressure on the won–dollar exchange rate and revitalizing domestic trading.

The government also plans to encourage major brokerages to quickly roll out forward‑selling products for individual investors, saying the move will help them manage foreign exchange risks and increase dollar supply, contributing to FX market stability.