Lee Bok-hyun "No Disagreement Between Parties on Abolishing Financial Investment Income Tax... Must Continue to Push Forward"

"Also Promoting Measures to Improve Protection for General Shareholders"

Lee Bok-hyun, the head of the Financial Supervisory Service, stated that he would consistently push forward with existing capital market-related issues, such as the abolition of the Financial Investment Income Tax and the amendment of laws to strengthen the protection of general shareholders. This move seems to be an effort to quell concerns that various capital market policies and bills might drift following President Yoon Suk-yeol's sudden declaration and subsequent lifting of martial law.

On the 9th, Lee held a financial situation review meeting at the Financial Supervisory Service in Yeouido-dong, Seoul, and said, "The regulatory advancement that the supervisory authorities have focused on must be pursued consistently without any wavering."

He continued, "The abolition of the Financial Investment Income Tax is an issue without disagreement between the ruling and opposition parties, and there is also a social consensus on the advancement of the capital market, including the protection of general shareholders," adding, "Key policies, including those critical for stabilizing investment sentiment and previously announced to be completed within the year, must be pursued consistently."

He stated, "The Financial Supervisory Service is reviewing this year's value-up performance with the Financial Services Commission, Korea Exchange, and is discussing specific plans for next year," adding, "We are actively communicating with foreign investors, global IBs, etc., to explain that there is no change in our commitment to advancing the capital market."

Meanwhile, there are concerns in the market that various capital market policies may lose momentum due to the aftermath of the martial law situation. This is because the ruling and opposition parties are expected to be at odds for a while over major issues such as President Yoon's position and the ruling party's constitutional amendment discussions.

A securities industry official predicted, "The main discussions in the political arena this year are likely to focus on the follow-up to the 'martial law situation,' and it is likely that expectations for value-up will weaken for a while."

Reporter Han Han-gyeol always@hankyung.com