[Market Focus] Major Shareholder Capital Gains Tax Easing... Securities Stocks on the Rise

Securities stocks are on the rise amid expectations for the easing of the major shareholder capital gains tax standard.

As of 10:02 a.m. on September 10, Kiwoom Securities was trading at 241,500 won, up 10,500 won (4.55%) from the previous day. Korea Financial Group (up 5.37%), Hyundai Motor Securities (up 3.03%), LS Securities (up 2.80%), and Shin Young Securities (up 2.46%) were also showing upward trends.

The overall securities sector has been on an upward trend since the previous day, following news that the Ministry of Economy and Finance is considering easing the major shareholder capital gains tax standard.

On this day, Ko Yeonsu, a researcher at Hana Securities, stated, "The Korea Exchange Securities Index surged 7.2% yesterday on news of the review to ease the major shareholder capital gains tax. In particular, stocks with a high proportion of treasury shares saw a sharp increase in their prices."

He further analyzed, "This goes beyond simple expectations for easing the capital gains tax. The proposal for separate taxation of dividend income and the third amendment to the Commercial Act, which includes the mandatory retirement of treasury shares, are expanding the possibility of re-evaluating valuations (stock price levels relative to corporate value)."