Supported by expectations for a reform of the tax system related to dividends, bank stocks surged.
Woori Financial Group shares were traded at 25,400 won at 10:10 a.m. on the KOSPI market on the 8th, rising 8.32% (1,950 won) from the previous day. It set a new all-time high.
At the same time, Hana Financial Group shares were also traded at 92,000 won, up 7.35% (6,300 won) from the previous day. The stock price of Hana Financial Group hit a record high of 92,200 won during the trading session.
Shinhan Financial Group and JB Financial Group also set new all-time highs since their listing, while iM Financial Group recorded its highest price in the past year. Furthermore, corporations such as the Industrial Bank of Korea, KB Financial Group, and BNK Financial Group are showing stock price increases in the 4% range.
The possibility of adjustments to the tax system related to dividends has raised investor interest in bank stocks, which are considered representative dividend stocks. According to the financial investment industry, the government and the ruling party, the Democratic Party of Korea, are reviewing the tax rates and tax brackets for dividend income tax.
In particular, whether to separate the taxation of dividend income is the main concern for investors. The income tax amendment proposal currently submitted to the National Assembly contains provisions to apply a separate tax rate for dividend income received from listed companies with a dividend payout ratio of over 35%, separating it from comprehensive income.