The government plans to offer temporary tax incentives to individual investors for one year starting next month, if they sell overseas stocks and reinvest the proceeds in domestic equities.

According to the finance ministry on Tuesday, investors who want to benefit from the tax incentives will need to transfer overseas stocks they held as of December 23 last year into reshoring investment accounts.

After selling the stocks, they are required to convert the proceeds into South Korean won and make long-term investments in domestic stocks or stock funds to be maintained for at least one year.

Those who meet the requirements will qualify for an income tax deduction on capital gains up to 50 million won, or around 34-thousand U.S. dollars: 100 percent for stocks sold in the first quarter, 80 percent for stocks sold in the second quarter and 50 percent for stocks sold in the second half.

The government will reduce the deductions for those who choose to repurchase overseas stocks through separate accounts.

A related bill is expected to be deliberated in the National Assembly during next month’s extraordinary session.