FX.co ★ South Korea Pushes Tax, Market Reforms to Aid Investors

South Korean President Lee Jae-myung unveiled an initiative on Wednesday to overhaul the nation's tax framework with the goal of incentivizing increased dividend distributions, thereby enhancing the stock market's allure for investors. Speaking at the Korea Exchange, President Lee proposed reducing taxes on dividend earnings, provided it does not severely affect the government’s financial position. He also highlighted the necessity for regulatory reforms to tackle unfair trading practices, introducing a stringent “one-strike-out” policy designed to impose severe penalties on illicit trading activities, thereby bolstering market integrity. Following his inauguration on June 4, Lee’s Democratic Party swiftly reintroduced legislation to broaden the fiduciary responsibilities of corporate board members, with the aim of fortifying shareholder rights. The party is determined to secure the bill’s passage this month. President Lee's comprehensive economic strategy is driven by his ambition to elevate the KOSPI index to 5,000, underscoring his dedication to rejuvenating South Korea’s financial markets.