Hong Jun-pyo: "I Will Abolish Stock Short Selling and the Serious Accident Corporate Punishment Act"

Corporate Tax Top Rate Cut, 100 Trillion Won Fund Formation
"Floor Area Ratio Increased Up to 1500%" Real Estate Reform Also

[Image source=Yonhap News]

[Asia Economy Reporter Junyi Park] Hong Joon-pyo, a presidential candidate from the People Power Party, announced economic pledges including the abolition of stock short selling, repeal of the Serious Accident Punishment Act, and reduction of the corporate tax rate.

On the 25th, Hong stated, "We will restructure into an advanced country-type economic system and market structure to stand tall as the 7th largest economy with a national income of $50,000," unveiling the ‘Economic Grand Reform Pledge Toward the Group of Seven (G7) Advanced Countries.’

The pledges are broadly divided into three categories: COVID-19 support, economic reform, and real estate reform. First, he pledged to immediately establish an ‘Emergency Economic Committee’ upon election and serve as its chairman. To overcome COVID-19, he promised additional loan repayment deferrals and financial support especially for self-employed individuals and the lower-income class.

In the economic sector, he announced plans to abolish short selling. Hong explained, "The current short selling system is a tilted playing field unfavorable to retail investors but beneficial only to foreigners and institutions," adding, "We will completely abolish it, not just partially amend the system." In response to criticism at a press conference that ‘foreign investors will withdraw,’ he rebutted, calling it "an unfounded fear," and said, "Foreign investors are flocking to the Korean stock market."

He also included a plan to establish a public-private led fund called the ‘Advanced Korea Future Fund (tentative name)’ worth 100 trillion won. Hong declared, "The money supply immediately convertible to cash among market funds is about 3,500 trillion won, the largest ever," and pledged, "We will provide new investment destinations for idle funds."

To create a ‘business-friendly country,’ he promised to lower the highest corporate tax rate and completely reform quasi-tax burdens. He also stated plans to repeal and amend the Serious Accident Punishment Act and the class action lawsuit law. Regarding this, he emphasized, "We will cooperate with the National Assembly to adjust excessive corporate regulations and ideologically driven laws first."

As a real estate reform pledge, he promised to supply ‘land lease quota housing’ to youth and newlyweds and abolish the comprehensive real estate tax. Hong said, "The floor area ratio for redevelopment and reconstruction in Seoul is only 145%, which is even lower than Ilsan. We will raise this to 1500% to significantly increase housing supply in Seoul."

This content was produced with the assistance of AI translation services.