Kim Byung-hwan, Financial Services Commission Chairman, "Will Actively Consult with the National Assembly on Expanding ISA Tax Support"

Korea Exchange Holds 'Corporate Value-Up Meeting'
Agrees to Prioritize Discussions on Capital Market Act Amendments

On the 26th, Kim Byung-hwan, Chairman of the Financial Services Commission, stated, "We will actively cooperate with the National Assembly to prioritize discussions on legislative matters such as expanding tax support for Individual Savings Accounts (ISA) and amending the Capital Market Act related to corporate governance."

Chairman Kim expressed this policy stance during a 'Corporate Value-Up Meeting' held on the morning of the same day at the Korea Exchange in Yeouido, Seoul, demonstrating his commitment to value-up policies.

Earlier, on the 10th, the National Assembly plenary session approved a revised bill of the 'Restriction of Special Taxation Act' that excluded the value-up corporate tax incentives originally included in the government's proposal. The government’s original plan, which included ▲corporate tax credits for companies that expanded shareholder returns to promote value-up ▲shareholder return promotion tax that separates dividend income taxation for individual shareholders ▲and expanded ISA tax support measures, was not included.

Chairman Kim said, "The government and related agencies will continue to pursue value-up policies consistently and unwaveringly," urging continuous interest from domestic and foreign investors and policy participation from listed companies.

The financial authorities specifically plan to ▲re-push for value-up tax support and continue efforts to spread momentum through awards for excellent companies and joint IR activities ▲promote institutional improvements for active shareholder rights exercise, such as amending the Capital Market Act to improve corporate governance, stewardship code implementation checks, and expanding English disclosures ▲and strengthen efforts to restore market trust through preparations for the resumption of short selling and strict sanctions against unfair trading.

Listed companies attending the meeting, including Samsung Electronics, KB Financial Group, HD Hyundai Heavy Industries, and Gamseong Corporation, announced plans to disclose and faithfully implement corporate value enhancement plans. However, they agreed that for more active corporate participation, the tax incentives for participating companies announced by the government must be implemented promptly.

Domestic and foreign analysts responded, "It is necessary for the government to clearly express its policy will and continuously implement policies so that domestic and international market participants can have confidence in the continuity of the value-up policy." They also mentioned, "There are high expectations from domestic and foreign investors for amendments to the Capital Market Act to improve corporate governance and capital market institutional improvements such as short selling," adding, "It is necessary to promote improvements to the delisting system to improve the stock market's structure." Additionally, opinions were presented that practical enhancement of capital profitability through industrial policies is necessary for the success of the value-up policy.

Jung Eun-bo, Chairman of the Korea Exchange, said, "Despite recent domestic and international uncertainties, value-up participation has expanded mainly among the top 10 conglomerates and financial holding companies, showing active communication with shareholders," and added, "The Korea Exchange will actively support value-up so that the intrinsic value of our companies can be properly evaluated in the market and will continue efforts to strengthen the competitiveness of the stock market."

Lee Se-hoon, Senior Deputy Governor of the Financial Supervisory Service, emphasized, "Proactive corporate participation in value-up is very important to overcome the recent excessive undervaluation of the Korean stock market," and stated, "The Financial Supervisory Service will closely cooperate with related ministries to discover various tasks that can revitalize our stock market and to pursue them consistently and continuously."

Jung Jung-hoon, Director of the Taxation Office at the Ministry of Economy and Finance, mentioned, "We plan to actively promote the value-up tax support measures for companies that were not passed in this National Assembly by closely discussing them with the National Assembly through the ruling-opposition consultation body and others to produce tangible results."