Ahn Dogeol: "Tax Benefits for Dividend Companies... Boosting Shareholder Returns"

"Separate Taxation for Dividend Income"
...Proposal of the Special Taxation Act Amendment

Ando Geol, member of the Democratic Party of Korea.

Democratic Party lawmaker Ahn Dogeol (Gwangju Dongnam-eul) announced on the 28th that he has proposed a revision to the Restriction of Special Taxation Act, which would provide separate taxation benefits for high-dividend companies and companies that increase their dividends.

This is an innovative tax reform plan aimed at revitalizing the stock market, and it is drawing attention from investors as it offers bold tax benefits to high-dividend companies and those expanding their dividends.

The core of the amendment is the application of differentiated tax rates to dividend-paying companies. Unlike the existing tax system, it is designed to actively encourage companies' shareholder return policies.

The main feature is the application of differentiated tax rates ranging from 9% to 30% depending on the dividend amount, with the lowest rate of 9% applied to dividends of 20 million won or less. This is expected to provide tangible benefits to small investors.

Experts are evaluating the amendment as a groundbreaking proposal that could fundamentally change the paradigm of the domestic stock market. In particular, it is expected to have a positive impact on attracting foreign investment and strengthening the competitiveness of the domestic capital market in the long term.

Ahn emphasized, "The amendment aims to improve the structure of the Korean capital market," adding, "It will expand individual investors' participation in the stock market and contribute to enhancing shareholder value in companies."