Morita, Chairman of the Japan Securities Dealers Association, Says "Tax-Exempt Small Investments Contribute to Retirement Preparation"

Seo Yuseok, Chairman of the Korea Financial Investment Association, Holds 'Value Up' Dialogue with Japanese Securities Industry Association Chairman

Seo Yuseok, Chairman of the Korea Financial Investment Association, recently met Toshio Morita, Chairman of the Japan Securities Dealers Association, in Germany. Attending the annual general meeting of the International Council of Securities Associations (ICSA), Chairman Seo discussed with the head of the Japanese securities industry the background of the rise in the Japanese stock market and the implications for value-up strategies.

Chairman Morita explained the reasons behind the revitalization of the Tokyo Stock Exchange, stating, "In Japan, Prime Minister Kishida led policies in a top-down manner, which resulted in value-up of the capital market," and added, "Prime Minister Kishida himself has repeatedly explained the Japanese government's efforts to activate the capital market to overseas investors."

He also introduced Japan's revamped small investment tax exemption system, the 'New NISA,' which was reformed in January this year. He said, "The holding limit was increased to 18 million yen, three times higher than before," and explained, "interest, dividends, and capital gains are all tax-exempt, and the tax exemption period is unlimited." He continued, "It has become a stepping stone for capital that was staying in banks to move into the financial market," and added, "According to statistics from the first quarter of this year, the number of New NISA account openings increased 3.2 times compared to the previous year." Furthermore, he noted, "Investment amounts also increased 2.8 times," and expressed hope that "the New NISA system will greatly contribute to the retirement preparation of the Japanese people."

Chairman Morita emphasized, "Because the public is not familiar with financial products, it is important to promote education on financial investment overall, not just NISA policies, for policy success," and said, "Japan plans to establish a public institution dedicated solely to financial education called the 'Financial and Economic Education Promotion Organization.'"

Chairman Seo evaluated the meeting as an opportunity to benchmark the implications of Japan's case, which developed into an advanced capital market by attracting participation from listed companies and investors through market-friendly policies.