Lee Bok-hyun "If Financial Investment Tax is Enforced, Confusion Among Individual Investors Will Worsen"

Congratulatory Speech at the 'Capital Market Value-Up International Seminar'
Reiteration of 'Abolition of the Financial Investment Tax' in Interviews and Official Settings
Support for the Amendment of the Commercial Act's 'Duty of Loyalty of Directors'

At the Capital Market Value-Up International Seminar held on the 28th at the Conrad Hotel in Yeouido, Seoul, hosted by the Korea Financial Investment Association, attendees including Seo Yoo-seok, Chairman of the Korea Financial Investment Association (third from the right in the front row), Lee Bok-hyun, Governor of the Financial Supervisory Service (second from the left in the front row), Baek Hye-ryun, Chairperson of the National Assembly's Political Affairs Committee (second from the right in the front row), and Kim Ju-hyun, Chairman of the Financial Services Commission (far right in the front row), are posing for a commemorative photo. Photo by Heo Young-han younghan@

On the 28th, Lee Bok-hyun, Governor of the Financial Supervisory Service, reiterated, "If the financial investment income tax (금투세) is enforced according to past standards, it could increase concerns and confusion among the 14 million individual investors who are the backbone of our capital market."

That morning, Governor Lee attended the 'Capital Market Value-Up International Seminar' hosted by the Korea Financial Investment Association and stated, "To elevate our capital market beyond the market's expectations, it is necessary to expand discussions toward fundamentally improving its structure."

Governor Lee appeared on MBC's radio program 'Kim Jong-bae's Focus' the previous day and said, "At the very least, there needs to be a public discussion on why the financial investment income tax should be abolished." This marked his second consecutive day emphasizing the position to abolish the financial investment income tax scheduled for introduction in 2025.

He added, "Value-up of companies and the capital market is a long-term task," and reiterated, "To establish a virtuous cycle of coexistence where investors invest in good companies and enjoy the profits, discussions on the tax system are also necessary."

Additionally, he expressed the position that the Commercial Act should be amended regarding the 'Duty of Loyalty of Directors (Article 382-3 of the Commercial Act)' to fundamentally improve the structure of our capital market. This stance differs from the government's existing position. In January, the Ministry of Justice announced its intention to amend the Commercial Act focusing on the 'Prohibition of Misappropriation of Business Opportunities (Article 392-2)' instead of the 'Duty of Loyalty of Directors.'

Governor Lee said, "There have been repeated cases of corporate decision-making against investor interests, such as split listings, but there are criticisms that trust in the capital market is undermined due to insufficient legal protections for minority shareholders."

He continued, "To resolve this, the duty of loyalty of directors should be expanded to include shareholders, and the business judgment rule should be clarified through legislation," adding, "There is a need to discuss more fundamental and essential improvements to corporate governance from a balanced perspective."