"Securities Stocks Highlighted by Policy Momentum Amid Easing of Major Shareholder Capital Gains Tax"

Hana Securities forecasted on September 10 that the supply and demand for securities stocks would improve due to policy momentum.

Ko Yeonsu, a researcher at Hana Securities, explained, "The KRX Securities Index surged 7.2% on the day following news that the Ministry of Economy and Finance is considering easing the capital gains tax criteria for major shareholders. Since the capital gains tax for major shareholders has been a representative regulation that has dampened individual investors' trading sentiment, even the possibility of easing has quickly fueled expectations for improved supply and demand across the sector."

Ko believes that this week's stock price increase will not be limited to expectations of capital gains tax relief. He said, "Following the proposal of a bill for separate taxation of dividend income (with a maximum tax rate of 25%), the inclusion of a mandatory treasury share cancellation plan in the third amendment to the Commercial Act is also expanding the possibility of a valuation rerating."

He added, "Although there are concerns about a peak-out in the second half after record-breaking results in the first half, we expect that policy changes will create a virtuous cycle, leading from improved supply and demand to increased trading volume, stock market revitalization, and improved performance in investment banking, wealth management, and trading."

Ko maintained an 'Overweight' investment opinion on the securities sector. He said, "We expect that the stock prices of the securities sector will be driven more by policy momentum than by performance. In addition to the amendment to the Commercial Act, institutional support such as approval for note issuance and IMA business, and the creation of the National Growth Fund, is expected to alleviate concerns about a performance peak-out."

Ko also stated, "In the second half of the year, there is a high possibility that policies related to security tokens (STO) will be legislated, making the token securities market an emerging growth momentum. This is because Koscom is considering the use of a Korean won stablecoin as a payment method in the STO market, and the Financial Services Commission has reportedly begun accepting applications for the licensing of over-the-counter trading platforms for fractional investments."