President Yoon Studying the Stock Market Intensely: "Remove Regulations to Resolve Korea Discount"

KBS and 100-Minute Special Interview
"Removing Regulatory Aspects Is Very Important"
Analysis of Intent Behind Proposing Additional Measures to Revive the Domestic Stock Market

President Yoon Suk-yeol is recording a special interview titled "Visiting the Presidential Office" with KBS at the Yongsan Presidential Office building in Seoul on the 4th.

President Yoon Suk-yeol stated in a special interview with KBS the previous day that he will further revise the tax system and regulations to resolve the "Korea Discount," where domestic companies' stock prices are lower than those of foreign companies. This is interpreted as his intention to present measures to revitalize the undervalued domestic stock market, in addition to raising the major shareholder threshold for capital gains tax on stocks and abolishing the financial investment income tax, which were announced earlier at the Livelihood Discussion Forum.

In the 100-minute interview held at 10 p.m. on the 7th, President Yoon said, "When companies develop, workers who invest in those companies' stocks can build assets. This can significantly reduce unnecessary class conflicts."

He emphasized, "To align with global standards, we must reduce the Korea Discount. It is very important to remove regulatory aspects."

During the interview, President Yoon attracted attention by revealing his Yongsan office for the first time. He placed a bookshelf in the office that his late father, the late Yoon Ki-jung, an honorary professor at Yonsei University who passed away last year, had used for over 50 years. He also introduced his father's book, Analysis of Inequality in the Korean Economy. Professor Yoon is regarded as a scholar who made significant academic achievements in the study of income and wealth inequality. President Yoon expressed special affection and longing, saying, "I placed it here to keep my father's thoughts in mind as I work."

President Yoon Suk-yeol, after completing the recording of KBS's "Special Interview: Visiting the Presidential Office" at the Yongsan Presidential Office building in Seoul on the 4th, introduced to KBS anchor Park Jang-beom the bookshelf and the book "Analysis of Inequality in the Korean Economy," which are relics of his late father, the late Professor Yoon Ki-jung, Honorary Professor at Yonsei University, installed in his office. [Image source=Yonhap News]

In particular, it is known that President Yoon has been considering various institutional measures to revitalize the domestic stock market. He is reportedly acquiring stock-related technical terms and instructing his presidential office aides to actively propose ways to raise the value of undervalued domestic stocks, including tax systems. President Yoon is personally studying technical terms such as Return on Equity (ROE), an indicator of how efficiently a company uses its equity capital, while seeking ways to resolve the Korea Discount.

Starting the interview with topics directly related to the public's daily life, such as prices and interest rates, is also interpreted as reflecting the president's priority on the "livelihood economy." Ahead of the holidays, President Yoon expressed concern over soaring fruit prices, saying, "We are currently managing inflation at around 2%, but managing prices of fruits like apples is somewhat difficult." He explained, "We are releasing large stockpiles into the market and lowering tariffs on imported fruits to allow them to enter the market at lower prices." He added, "When prices rise, people inevitably feel that their real wages and disposable income decrease," and emphasized, "We will continue to actively manage prices of essential goods through deregulation and supply policies."

Serious Accident Punishment Act Difficult for Small and Medium Enterprises to Handle

Regarding the Serious Accident Punishment Act, which has been fully enforced since the 27th of last month for workplaces with fewer than 50 employees due to failed negotiations between ruling and opposition parties, President Yoon said, "The level of punishment is high and the scope of responsibility has expanded, making it difficult for small and medium enterprises to cope." This implies that small and medium enterprises, already facing difficult economic conditions such as high interest rates in recent years, would inevitably suffer management setbacks if subjected to this law. President Yoon also mentioned, "There has been no empirical verification so far that strengthening punishment and expanding responsibility reduces worker safety."

He also stressed the need for fair competition among banks to benefit financial consumers. President Yoon has defined banks as vested interests in a near-oligopoly state and has encouraged competition by reducing interest rate margins and comparing loan products. In this interview, he explained, "People compare loan conditions among banks and can change banks without disadvantages, so interest rates have actually dropped quite a bit," adding, "As a result of inducing competition among banks, interest rates have fallen by about 1.6 percentage points."

On the afternoon of the 7th, citizens are watching a special interview with President Yoon Seok-yeol, being broadcasted via KBS, in the Seoul Station waiting room. [Image source=Yonhap News]

Regarding the solution to the low birthrate problem, he presented the initial goal of a total fertility rate of 1.0. President Yoon said, "It is the government's top national task. First, we must aim for a total fertility rate of 1.0 and devise measures accordingly." He continued, "We plan to operate the Low Birthrate and Aging Society Committee very efficiently to produce concrete results," and explained, "I think our society is too caught up in excessive and unnecessary competition. We are trying to approach this more from a humanistic and family perspective. Balanced regional development is also part of this."

Regarding the controversy over First Lady Kim Geon-hee's luxury handbag scandal that swept the political world, he stated, "The fact that it was brought up a year later just before the election should be seen as a political plot," but clarified, "However, what is important is not the political plot but clearly drawing the line and behaving properly so that such incidents do not happen again."