The Federation of Korean Industries (FKI) announced on Dec. 23 that it had proposed to the Office for Government Policy Coordination an idea to enable domestic stocks listed on the KOSPI and KOSDAQ markets to be made into gift cards and given as presents.
Stock gift cards are a new concept financial investment service that issues domestic listed stocks in the form of mobile gift cards. They offer superior convenience and accessibility compared to existing financial investment gift certificates that cannot designate specific stocks for gifting or stock gifting services that only allow transfers between the same securities companies. The FKI expects that utilizing stock gift cards will contribute to revitalizing the domestic stock market amid the surge in individual investors’ investments in overseas stocks including those in the United States.
In a survey commissioned by the FKI to Mono Research targeting adults aged 40 and under nationwide (500 respondents), more than 4 out of 10 people (44.8%) answered that they “have an intention to use” the stock gift card service if it were introduced. Among those with stock investment experience, the intention to use was higher at 54.7%.
The FKI also presented four policy tasks for establishing the stock gift card service. Through the Financial Services Commission’s designation of innovative financial services, they propose to enable the distribution and sale of stock gift cards on online shopping platforms, and to set the gift tax exemption limit at the annual 2.5 million won level, which is the same as the current basic deduction limit for stock transfer income.
