President Yoon: "Eliminating Market Instability by Abolishing Financial Investment Tax... Hope for Bipartisan Cooperation" (Comprehensive)

"Entry into the Global Sovereign Bond Index Opens Path to Deepen Capital Markets"
"Corporate Value Up... Various Incentives for Shareholder-Friendly Companies"

President Yoon Suk-yeol is speaking at the Cabinet meeting held on the 15th at the Yongsan Presidential Office Building in Seoul. [Image source=Yonhap News]

President Yoon Suk-yeol stated on the 15th, "Inclusion of our country in the World Government Bond Index (WGBI), eradication of illegal short selling, tax reform, and corporate value-up initiatives will resolve the Korea discount (undervaluation of the Korean stock market), elevate the status of our capital market, and attract more investment." He particularly emphasized that the abolition of the financial investment income tax is necessary for the WGBI inclusion effect to spread to the stock market, and urged both ruling and opposition parties to unite their efforts for this cause.

At the Cabinet meeting held at the Yongsan Presidential Office on the same day, President Yoon said, "On October 9, our country's inclusion in the WGBI was confirmed, proudly placing our name on the global government bond investment index worth 2.5 trillion dollars, opening a channel that will add breadth and depth to our capital market."

Evaluating that "this is international recognition that the policies our government has pursued were on the right track," President Yoon projected that approximately 75 trillion won of global investment funds will flow in due to this WGBI inclusion. He emphasized, "With stable interest rates based on global government bond demand, the financing costs for the government and corporations will decrease, foreign exchange liquidity supply will be smooth, and the value of the Korean won will stabilize."

"Amendment to the Capital Market Act Promulgated... Punishments for Illegal Short Selling to be Strengthened"

He continued, "Along with good news in the government bond market, our stock market, the 'flower of the capital market,' is also on the verge of change," explaining, "On September 26, the amendment to the 'Capital Market Act,' which includes improvements to the short selling system, passed the National Assembly and is being promulgated today after the Cabinet meeting." President Yoon expressed hope, saying, "When the law is enforced at the end of March next year, illegal short selling will be fully inspected through computerized systems," and added, "The 'tilted playing field' between institutions and individual investors will be resolved, and punishments and sanctions against illegal short selling and unfair trading will be significantly strengthened."

He also promised to further accelerate the 'corporate value-up' policy to revitalize the capital market. President Yoon said, "We will provide various incentives to shareholder-friendly companies that increase dividends and retire treasury stocks," and stated, "We will surely create a virtuous cycle where companies increase their value, and the invested citizens enjoy greater profits and opportunities for asset formation." Furthermore, he added, "I hope the ruling and opposition parties will join forces to eliminate market instability factors through the abolition of the financial investment income tax and develop our capital market."

[Image source=Yonhap News]

President Yoon also mentioned the outcomes of his recent state visits to the Philippines and Singapore, as well as his attendance at the ASEAN (Association of Southeast Asian Nations) Summit held in Vientiane, Laos.

He emphasized, "Through this Southeast Asia tour, we strengthened strategic cooperation with Asia's allied countries in key economic cooperation areas such as infrastructure, supply chains, and energy," and added, "As a global pivotal country, we solidified our diplomatic network on the ASEAN stage." Specifically, he referred to the 'Memorandum of Understanding (MOU) on the feasibility study for resuming the Bataan nuclear power plant construction' signed with the Philippines, the 'Supply Chain Partnership Agreement' concluded with Singapore, and the 'Comprehensive Strategic Partnership' established with ASEAN. He urged, "Each ministry should ensure that the outcomes of this tour translate into tangible benefits for the people through proper follow-up measures."

"North Korea's Nuclear and Missile Threats Endanger Human Life and Economy"

In particular, President Yoon explained, "Our role in the ASEAN+3 (South Korea, China, Japan) cooperation framework will be further expanded," and stated, "We will contribute to expanding financial and food safety nets within ASEAN and lead cooperation in future industries, including electric vehicles."

Considering the recent tensions with North Korea, he said, "Security challenges that go against the international order, such as North Korea's nuclear and missile threats and maritime conflicts in the Indo-Pacific region, are putting human life and the economy at risk," and emphasized, "We will take the lead in closely cooperating with value-sharing countries in the region, including the United States, Japan, Canada, Australia, New Zealand, Singapore, the Philippines, and Malaysia, to protect freedom, peace, and prosperity in the Indo-Pacific region."