Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, argued that tax benefits for long-term held stocks should be strengthened to promote a culture of long-term investment in the domestic stock market. He also stated that to prevent benefits from concentrating on major shareholders who hold stocks for a long time, he would consider providing tax benefits for stocks held in the form of indirect investments like funds.
The candidate noted during his appearance on the 'Economic YouTube Union Talk Show' on the afternoon of the 8th that "it is desirable to give tax benefits for long-term held stocks," and regarding the side effects of benefits concentrating on major shareholders or controlling shareholders, he said that applying this to funds (indirect investment) is a good method.
When asked, "Which method do you prefer between direct investment seeking individual stocks and indirect investment like funds?" the candidate replied, "I am risk-tolerant, so I would obviously go for direct investment in individual stocks," adding, "Our country is too focused on short-term trading. There is nothing left in commissions, yet there is too much (short-term investment)."
He also stated, "If you hold long-term, there should definitely be profits, but there aren’t any. I think it would be better to increase tax benefits for long-term holding," and regarding the potential side effects of benefits concentrating on major shareholders and controlling shareholders, he said, "I will look for ways to give long-term holding benefits to funds, etc."
The candidate claimed that it is possible to enter an era of 'Korea Composite Stock Price Index (KOSPI) 5000' within five years. He also mentioned that the average net worth ratio (PBR) of domestic listed companies is below 1, stating, "It doesn't even reach the level of developing countries or underdeveloped nations." He identified reasons such as ▲lack of transparency in the stock market ▲geopolitical risks on the Korean Peninsula.
The candidate emphasized, "Even if stock price manipulation occurs, there are no penalties, and behaviors resembling stock price manipulation are still being observed these days," stating, "If the instability of policies, the instability of the stock market, the regressive governance of corporate management, and the geopolitical risks that threaten peace on the Korean Peninsula can normalize, theoretically, a KOSPI of 5000 is possible."