Yoon: "The Stock Market is a Ladder of Opportunity... We Will Resolve the Korea Discount" (Comprehensive)

Incumbent President Attends Stock Market Opening Ceremony for the First Time... Mentions Income Tax Abolition to 'Normalize Capital Market'
President Yoon: "Korea's Stock Market is Severely Undervalued... Will Pursue Regulatory Reform During Term"
On 'Wealth Tax Cut Controversy': "Fairness is Not Mechanical or Uniform Equality... Supports a Fair Market"
"Our Stock Market is a Playground for Foreigners and Institutions... Excessive Tax Burden Harms and Distorts the Market"

President Yoon Suk-yeol attended the opening ceremony of the stock market's first trading day of the new year on the 2nd and stated, "The stock market is a 'win-win platform' where the people and companies grow together, and a 'ladder of opportunity' that supports the accumulation of citizens' assets." As the securities and derivatives markets prevent social stratification and enhance social dynamism, he expressed his intention to actively support market revitalization, including deregulation. This is the first time a sitting president has attended the stock market opening ceremony. President Yoon also requested government-level support for short-selling reform and the abolition of the financial investment income tax.

On that day, President Yoon attended the '2024 Securities and Derivatives Market Opening Ceremony' held at the Korea Exchange Seoul building in Yeouido, Seoul, and said, "Korea has many world-class companies with global competitiveness, but the stock market is very undervalued," promising, "During my term, I will resolve the 'Korea Discount' through capital market regulatory reforms."

President Yoon Suk-yeol is delivering a congratulatory speech at the opening ceremony of the 2024 Securities and Derivatives Market held on the morning of the 2nd at the Korea Exchange in Yeouido, Yeongdeungpo-gu, Seoul.
[Photo by Yonhap News]

As the first sitting president to visit the stock market opening ceremony, President Yoon has consistently emphasized that "the core of a free market economy lies in the development of the capital market." His visit to the opening ceremony was a gesture to convey the government's commitment to 'normalizing the capital market.' Since he directly mentioned resolving the so-called 'Korea Discount,' where domestic companies' stock prices are lower compared to similar foreign companies, government-level support measures such as deregulation are expected to follow.

In particular, President Yoon directly mentioned the 'short-selling reform plan' and the 'abolition of the financial investment income tax,' urging related ministries and agencies to "prepare without any setbacks." He also said, "We will positively consider revising the Commercial Act to enhance the interests of small shareholders and significantly expand asset formation support programs for the public, such as Individual Savings Accounts (ISA)."

He continued, "We will thoroughly prepare the establishment of a computerized system so that our stock market can shed the stigma of being a playground for foreigners and institutions," adding, "If excessive tax burdens harm innocent victims and distort the market, improvements must be made in line with market principles." President Yoon further explained, "As confirmed by past overseas cases, any system that causes side effects such as stock market stagnation and investor withdrawal without considering the overall economy and market must be corrected."

This reflects the president's judgment that the political and economic systems supporting corporate performance are outdated. The gist is that if the government reforms diplomacy and security, external soundness, fiscal soundness, macroeconomic growth rate, and foreign exchange capital market systems so that domestic companies are not undervalued relative to their performance, the capital market's infinite growth potential can be fully realized.

Recently, President Yoon has directly driven financial policies that were campaign pledges, such as banning short-selling and easing stock transfer taxes. Regarding illegal short-selling, he warned, "Neglecting this further makes it difficult to form fair prices in the stock market, causing significant losses to individual investors and leading to a decline in trust in the securities market and investor withdrawal." He declared, "To prevent further damage, short-selling will be banned until fundamental improvement measures are established."

He also hastened the legislative notice of the amendment to the Enforcement Decree of the Income Tax Act, raising the threshold for major shareholders subject to capital gains tax from the current 1 billion KRW to 5 billion KRW per stock, as part of 'capital market normalization.' Since major shareholder capital gains tax causes large investors to avoid the stock market, this ultimately reflects the damage to 'ants' (small investors). Previously, President Yoon proposed campaign pledges such as criminal penalties for illegal short-selling equivalent to stock manipulation and the application of circuit breakers that automatically ban short-selling during excessive stock price declines.

Regarding the 'rich tax cut controversy' pointed out by the opposition, President Yoon personally clarified, saying, "The fairness I, Yoon Suk-yeol, speak of is not mechanical or uniform equality. True fairness is creating a dynamic ladder of opportunity that one can climb through their own efforts." He added, "The government and I will continuously communicate with market participants and do our best to support a fair market."

President Yoon Suk-yeol, as the first sitting president in history, attended the opening ceremony of the 2024 Securities and Derivatives Market held on the morning of the 2nd at the Korea Exchange in Yeouido, Yeongdeungpo-gu, Seoul. After pressing the opening signal button, he shook hands with Sohn Byung-doo, Chairman of the Korea Exchange.
[Photo by Yonhap News]

In political circles, President Yoon's actions on this day are also seen as an attempt to win the votes of the 10 million Donghak Ant investors ahead of the general election scheduled for April. It is interpreted that the government, which last year addressed investors' concerns by banning short-selling and easing the capital gains tax threshold for major shareholders, reiterated its commitment to eradicating unfair trading. In fact, after the COVID-19 pandemic, as liquidity increased in the market, retail investors such as white-collar workers, young people, and metropolitan area investors flooded into the stock market. Also, since the Yoon administration prioritizes 'fairness' and 'rule of law,' this is read as an expression of determination to eradicate unfair practices in the stock market.

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