Yoon: "Significant Expansion of ISA Enrollment and Tax Exemption... Short Selling Ban Not for Election Purposes" (Comprehensive)

President Yoon Returns to the Exchange After 2 Weeks Emphasizing 'Win-Win Finance'
Promises ISA Expansion and Commercial Act Revision, "Boldly Overhaul Regulations"
Mentions Capital Market Interest Cartel... "Must Prevent Unfair Rent-Seeking"
Points Out Lack of Competition in Financial Sector, "Reduce Citizens' Interest Burden"

President Yoon Suk-yeol announced on the 17th that "the eligibility for subscribing to Individual Savings Accounts (ISA) and the tax-exempt limits will be significantly expanded." The intention is to diversify the domestic investment market, which is heavily concentrated in real estate, into stocks, bonds, and other assets, and to attract investments from high-net-worth individuals. In particular, President Yoon pointed out the excess profits in the financial sector and instructed the establishment of a 'fair competition system,' emphasizing that the short-selling ban is "not a temporary measure for the general election."

On the morning of the same day, President Yoon presided over the "Fourth Public Livelihood Discussion with the People" at the Korea Exchange in Yeouido, Seoul, stating, "Through revitalizing the capital market, both the people and companies must grow together."

President Yoon Suk-yeol is speaking at the "Public Discussion on Livelihood with the People - Fourth Session, Coexistent Finance, Expanding the Ladder of Opportunity" held at the Korea Exchange in Yeouido, Seoul on the 17th. Photo by Yonhap News

Having visited the Korea Exchange just two weeks after attending the stock market opening ceremony on the 2nd, President Yoon mentioned, "To leap forward in the capital market, we will boldly reform regulations that do not meet global standards and correct tax systems that contradict economic logic." This is to transform the stock market into a "win-win platform" where the public and companies grow together and a "ladder of opportunity" supporting the accumulation of citizens' assets.

President Yoon also explained, "For the nation and society to prevent the entrenchment of social classes and enhance social dynamism, the financial investment sector must be activated," adding, "We should benchmark the U.S. economy, where companies easily raise capital and citizens share the fruits of investment to achieve prosperity." To this end, he emphasized, "We must break up financial cartels through competition and prevent unfair rent-seeking." He further stated, "We will pursue amendments to the Commercial Act, including institutionalizing online electronic shareholder meetings, so that small shareholders can have their voices heard."

He also unveiled plans to significantly increase the contribution and tax-exempt limits of ISAs and to expand the eligible subscribers. Earlier this year, when visiting the Korea Exchange, President Yoon had already proposed fostering ISAs as a measure to "greatly expand programs supporting citizens' asset formation."

Sharp remarks were also directed at the financial sector, which recorded record profits. President Yoon pointed out, "A major cause of excess profits in the financial sector is largely due to a lack of competition within monopolistic fences," and announced, "To reduce the public's interest burden, we will expand the 'non-face-to-face loan switching platform,' which has been promoted since my inauguration, to include credit loans, mortgage loans, and now jeonse (key money) loans."

Regarding the short-selling ban, the government’s position was reiterated clearly. President Yoon said, "We have strictly investigated and punished illegal short-selling by foreign investment banks revealed last year and implemented the short-selling ban to prevent further damage," adding, "As I have already stated, this is not a temporary ban for the general election, and our government has no intention of resuming short-selling unless a definite measure to block side effects is established."

He also introduced support measures to alleviate the financial burden on ordinary citizens. Highlighting the "2 trillion won+? win-win package" voluntarily prepared by the banking sector and the "3 billion won scale interest reduction plan by the secondary financial sector," he added, "We will delete delinquency history information to support the recovery of those who have faithfully repaid their debts and to reduce disparities."

The president’s commitment to revitalizing the capital market with a focus on 'win-win' has continued since the beginning of the year. Two weeks ago, he attended the stock market opening ceremony for the first time as a sitting president and promised to push for the abolition of the Financial Investment Income Tax (FIIT), scheduled to be introduced next year. The presidential office explained that this is a choice for long-term coexistence among the public, investors, and the stock market, beyond the controversy over tax cuts for the wealthy. The FIIT imposes a 20% tax (25% on income exceeding 300 million won) on investors who earn income above a certain amount from financial investments such as stocks, bonds, funds, and derivatives, and this measure takes into account opposition from the financial investment industry and individual investors.

President Yoon Suk-yeol is listening to Financial Services Commission Chairman Kim Joo-hyun's presentation at the "Public Livelihood Discussion with the People - Fourth Session, Coexistent Finance, Expanding the Ladder of Opportunity" held at the Korea Exchange in Yeouido, Seoul on the 17th.
[Photo by Yonhap News]