Opposition Party to Push for Separate Taxation of Dividend Income and Improvements to Treasury Stock System

Ruling Party to Push for Separate Taxation of Dividend Income and Improvements to Treasury Stock System

The Democratic Party of Korea (DPK) hailed the KOSPI's historic breakthrough of 4,000 points as a landmark achievement for the South Korean stock market. They pledged to actively pursue policies aimed at further revitalizing the capital market. Specific plans include implementing separate taxation for dividend income and bolstering the treasury stock system to enhance investor benefits and ensure market soundness. These policy initiatives are expected to accelerate the recent KOSPI surge and strengthen the competitiveness of the South Korean capital market on the global stage. The DPK also aims to enhance market transparency and foster a more secure investment environment through stewardship code reviews and disclosure system reforms. These efforts are projected to have a positive impact on the long-term growth and development of the South Korean capital market. The government and the ruling party have committed to ongoing communication and collaboration to refine and implement capital market revitalization policies. Han Jeong-ae, the DPK's chief policymaker, emphasized the party's strong commitment to these policies at a National Assembly audit countermeasures meeting. "We will strive to ensure that we do not miss the current momentum and establish an era of 'Korea Premium,'" she stated. Han outlined a consistent policy approach encompassing separate dividend taxation, treasury stock system improvements, stewardship code reviews, and disclosure system reforms to support investors in a more stable environment. The focus will be on easing the tax burden on dividend income and improving the efficiency of treasury stock utilization by companies to enhance shareholder value. Furthermore, the DPK plans to enhance the effectiveness of the stewardship code and reform the disclosure system to ensure corporate management transparency and enable investors to make well-informed investment decisions. These policies are expected to play a crucial role in strengthening the competitiveness of the South Korean capital market and boosting investor confidence. Han also asserted that the KOSPI's 4,000-point milestone validates the economic policies of the Lee Jae-myung administration, echoing Lee's statement that "returning to the Korean market is a sign of intelligence." She highlighted the remarkable recovery of the KOSPI, which had plummeted to around 2,400 points due to the emergency martial law situation last December. The surge to 4,000 points within four months of the Lee Jae-myung administration's inauguration reflects market confidence in its economic policies. She also acknowledged the growing market expectations for the KOSPI to reach 5,000 points and pledged the government's commitment to meeting these expectations through sustained economic growth. The government's consistent goals, including improving corporate governance, modernizing the capital market, establishing a fair market, and addressing the "Korea Discount," are seen as having a positive impact on the KOSPI's rise. DPK floor leader Kim Byung-kee also offered a positive assessment of the KOSPI's ascent. "The KOSPI has recorded the highest growth rate among global stock markets this year," he stated, emphasizing that the Lee Jae-myung administration's and the DPK's capital market revitalization policies are yielding tangible results for the public. Kim lauded the government's policy efforts for strengthening the competitiveness of the South Korean capital market and enhancing investor benefits. He affirmed that the government will continue to support the capital market's growing role in the global market through ongoing policy improvements. Kim emphasized that the DPK and the government will work closely together to ensure that the KOSPI's rise is not a temporary phenomenon but a sustainable driver of growth. These efforts are expected to have a positive impact on the long-term growth and development of the South Korean economy. The DPK's pursuit of these capital market revitalization policies is expected to play a significant role in shaping a brighter future for the South Korean economy. In particular, separate taxation of dividend income and improvements to the treasury stock system are projected to improve investor sentiment and encourage companies to focus on enhancing shareholder value, injecting vitality into the entire market. Furthermore, stewardship code reviews and disclosure system reforms are expected to enhance market transparency and foster a more reliable environment for investors, contributing to the spread of a long-term investment culture. The Lee Jae-myung administration and the DPK have pledged to continue pursuing policies to revitalize the capital market and to do their utmost to promote the growth and development of the South Korean economy. These efforts are expected to serve as a crucial stepping stone towards South Korea's ascent as a global economic powerhouse.