South Korean Stock Market Surges Amid Reform Promises
South Korean President Lee Jae Myung has decided not to pursue revising the capital gains tax threshold on stock investments. This comes after public backlash and concerns over market impacts. Lee emphasizes reforms and increased domestic stock investment to counter the 'Korea Discount', with the KOSPI index benefiting from these announcements.
In a recent press conference, South Korean President Lee Jae Myung announced the decision to halt plans for revising the capital gains tax on stock investments. This decision aims to protect market stability after public resistance and concerns regarding potential negative impacts on the stock market.
President Lee underscored the importance of reforms to address the 'Korea Discount', a term used to describe the undervaluation of South Korean companies. Key measures include enhancing transparency and increasing domestic stock investments, which have already begun to boost the KOSPI index.
While plans to raise the stock transaction tax remain, Lee's reform agenda has sparked optimism among investors. His proposals, inspired by successful strategies from Japan, promise stronger market performance with a focus on corporate governance and shareholder protection.
(With inputs from agencies.)
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