Yoon calls for bold reforms in stock market taxes

Jan 18, 2024, 09:25 am

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President Yoon Suk-yeol speaks at a policy debate on financial markets at the office of the Korea Exchange in Seoul on Jan. 17, 2024./ Courtesy of Presidential Office

By AsiaToday reporter Hong Sun-mi

President Yoon Suk-yeol stressed Wednesday that the financial investment sector must be vitalized to “prevent the entrenchment of social classes and increase social mobility.”

Yoon also announced plans to expand eligibility for individual savings accounts (ISAs) and raise the limit on the non-taxable amount while pushing for legislative revisions to institutionalize electronic-based general shareholders’ meetings.

Yoon, who recently announced a set of measures that include a temporary short selling ban, easing standards on capital gains taxes on major shareholders, and abolishing the income tax on financial investments, has unveiled additional policy to protect the rights and interests of minority shareholders.

Regarding the inheritance tax imposed on major shareholders, Yoon hinted at the possibility of easing it based on public consensus.

At a public debate on the financial sector, Yoon said, “Companies can grow by raising funds through the capital market, and people can create wealth by participating in the stock market.”

Referring to stock investment and pension fund well developed I the U.S., Yoon stressed, “The financial investment sector eases class conflict between capitalists and laborers, and between companies and workers, and makes the people one.”

On his plan to expand the ISA payment list, Yoon said, “Some wonder if the government will continue to do it, but I will definitely keep the promise that I made with the people.”

Regarding the ban on short-selling, he said, “It is not a temporary ban for the general elections. I say once more that the administration does not plan to lift the existing ban, unless a definite measure is put in place to prevent negative side effects.”

Yoon hinted at the possibility of easing inheritance tax on major shareholders and at the same time, ordered the government to reform the tax system reasonably and swiftly.

“We can reform these tax systems only when the public recognizes and shares that excessive tax systems harms the middle class and ordinary people,” he said.

“Excessive tax systems that hinder the development of stock markets ultimately harm the middle class and ordinary people,” he said, adding, “If it can be done by the presidential decree, I will boldly push ahead regardless of any political disadvantages.”

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