Lee and Democratic Party's KOSPI 5000 Committee Luncheon... Consensus on 'Stock Price Suppression Prevention Act'

On the Day the KOSPI Index Hit 5,000, President Lee and the Special Committee Held a Luncheon
"Third Commercial Act Must Not Be Delayed... We Will Persuade the Party"

President Lee Jaemyung and the Democratic Party's KOSPI 5000 Special Committee met on January 22 and reached a consensus on promoting the "Stock Price Suppression Prevention Act" (Amendment to the Inheritance and Gift Tax Act). Coincidentally, the KOSPI index hit 5,000 on this day.

Yonhap News Agency

After a luncheon attended by President Lee Jaemyung and members of the Democratic Party's KOSPI 5000 Special Committee, Committee Chair Oh Gihyung spoke with reporters at a press conference held at the National Assembly in Yeouido. He stated, "During the luncheon, the idea for the Stock Price Suppression Prevention Act was discussed. Assemblywoman Lee Soyoung proposed it, and Assemblyman Kim Younghwan agreed with the bill," adding, "President Lee also expressed his willingness to actively consider it." Lawmakers Lee Kangil, Jung Junho, and Park Hongbae were also present at the press conference.

The Stock Price Suppression Prevention Act is a bill designed to prevent major shareholders of listed companies from artificially lowering stock prices during inheritance or gifting to reduce taxes. The bill sets a lower limit for the assessed value used for tax purposes at 80% of the company's net asset value, even if the market price of a listed company falls below 80% of its net asset value.

The luncheon also included discussions about dual listings. Assemblyman Oh said, "Since dual listings still occur in the market, stricter measures are necessary. Although an amendment to the Capital Markets Act regarding system improvements has been proposed, there was a shared concern that it is being blocked at the government level."

The KOSPI 5000 Special Committee believes that further delays in pursuing the third amendment to the Commercial Act are unacceptable for strengthening the capital market. When asked whether the third amendment to the Commercial Act could be submitted to the plenary session on January 28, Assemblyman Oh replied, "The committee cannot specify a particular date," but added, "However, it cannot be delayed any longer. In that sense, we are trying to persuade the party's floor leadership and members of the Legislation and Judiciary Committee."

This day also marked the achievement of the KOSPI index reaching 5,000. Assemblyman Oh commented, "There was a dad joke going around that the KOSPI 5000 Special Committee gathered for a luncheon on the day the KOSPI hit 5,000," and added, "Overall, the breakthrough of the KOSPI 5000 was one of President Lee Jaemyung's presidential campaign pledges, so it holds significant meaning as the fulfillment of a campaign promise."