On the 2nd, President Yoon Seok-yeol attended the stock market opening ceremony for the first time as a sitting president and announced, “I will push for the abolition of the financial investment income tax (gold investment tax).”
President Yoon delivered a congratulatory speech at the ‘2024 Securities and Derivatives Market Opening Ceremony’ held at the Seoul headquarters of the Korea Exchange (KRX) in Yeouido, saying, “The financial investment sector must be revitalized to prevent the entrenchment of class and increase social dynamism. “He said this.
At the same time, President Yoon emphasized, “There are many world-class companies with global competitiveness in Korea, but the stock market is very undervalued,” adding, “We will resolve the ‘Korea discount’ by abolishing capital market regulations during my term.”
Gold investment tax refers to a tax levied on financial investments such as stocks, bonds, funds, and derivatives, at a rate of 20 to 25% of the profit if the annual profit exceeds 50 million won for domestic stocks, and 2.5 million won for overseas stocks, bonds, ELS, etc. says that Originally scheduled to be implemented in 2023, it was postponed to 2025 after the launch of the Yoon Seok-yeol government.
The ruling and opposition parties agreed to postpone the implementation of the gold investment tax on the condition that the standard for major shareholders subject to stock capital gains tax in 2022 is maintained at 1 billion won. However, the government revised the enforcement ordinance at the end of last year to relax the majority shareholder standard from 1 billion won to 5 billion won. Accordingly, President Yoon plans to pursue a full-fledged abolition of the stock transfer tax by abolishing the gold investment tax.
In addition, on this day, President Yoon said, “We will prepare a comprehensive plan to reform short selling,” and “We will positively review the revision of the Commercial Act to improve the interests of minority shareholders and significantly expand programs to support people’s asset formation, such as Individual Asset Management Accounts (ISAs).” “It’s a plan,” he said.
President Yoon said, “The government severely punished illegal short selling by foreign investment banks that was revealed last year and implemented a ban on short selling to prevent the damage caused by illegal short selling from spreading.” He also added, “By raising the capital gains tax standard for major shareholders, repeated year-end selling bombs will be avoided.” “We tried to prevent investor losses due to this,” he said.
President Yoon then said, “We will prepare without a hitch to build a thorough computer system so that our stock market can rid itself of the stigma of being a playground for foreigners and institutions.”
Reporter Lee Ye-ji of Donga.com leeyj@donga.com
2024-01-02 03:48:00
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