Financial investment income tax set to be abolished: Market reacts positively

[Anchor]

As the financial investment income tax is set to be abolished, the market reacted positively.

Both the KOSPI and KOSDAQ rose.

With the uncertainty surrounding the policy resolved, it is evaluated that this will help in the recovery of stock prices for now.

Reporter Son Seo-young has the details.

[Report]

The stock market rebounded as the abolition of the financial investment income tax was confirmed after a long debate.

The KOSPI turned upward after four trading days, and the KOSDAQ rose by more than 3%, marking the largest increase in three months.

With the uncertainty in the market alleviated, it is assessed that the investment sentiment, which had been subdued, has improved.

There are also forecasts that the KOSDAQ market, which has a high proportion of individual investors, will benefit significantly from the abolition of the financial investment income tax.

[Park Sang-hyun/iM Securities Researcher: "Individual investors had been hesitant to invest due to anxiety, and there was supply-demand gap. So, the KOSDAQ has likely seen considerable benefits from the abolition of the financial investment income tax."]

As the year-end approaches, it is expected that the trend of high-net-worth investors withdrawing funds from the stock market will somewhat calm down.

Although the revision of the income tax law last year raised the threshold for major shareholders to 5 billion won, reducing the number of targets, recent movements of so-called big players selling off have increased market volatility ahead of the implementation of the financial investment income tax.

However, experts also point out that simply abolishing the financial investment income tax will have limitations in maintaining the upward trend of the stock market, and that fundamental changes such as improving corporate structures must be supported.

[Lee Hyo-seop/Director of Financial Services Industry at the Korea Capital Market Institute: "For foreign investors, issues such as improving governance, profitability and growth of listed companies must be resolved in a comprehensive manner for the stock market to gain momentum and continue to rise."]

As the government has decided to gradually ease the securities transaction tax based on the premise of abolishing the financial investment income tax, further discussions are needed regarding the issue of revenue shortfalls.

This is KBS News, Son Seo-young.