Measures to advance the Korean capital market for mutual benefits and growth of the public and companies The government will push forward with three major institutional improvements to resolve the “Korea discount” on stock prices and upgrade the capital market. 1. Enhance shareholder value ㅇ Improve shareholder returns - Revamp convertible bonds and treasury stock systems ㅇ Establish a system that enables investors to anticipate dividend payments in advance ㅇ Amend the Commercial Act - Ensure more responsibility from directors and strengthen stockholders’ general meetings - Grant appraisal rights in the event of split-offs 2. Improve access to capital markets ㅇ Abolish foreign investor registration requirement (foreign investor ID) and make English disclosures mandatory ㅇ Permit registered foreign institutions to participate in the onshore interbank FX market and extend trading hours ㅇ Continuously identify areas in need of taxation reform - Scrap financial investment income tax - Cut securities transaction tax to 0.15% from 2025 - Increase the upper limit of payment and the tax-free threshold for the individual savings account (ISA) 3. Ensure a fair and transparent market order ㅇ Strengthen preemptive monitoring and punishments on unfair trading practices ㅇ Root out illegal short-selling - Conduct comprehensive investigation into global investment banks, set up meticulous computer systems, and apply stricter monetary penalties ㅇ Strengthen regulations of pseudo investment advisory firms The government will promote the Corporate Value-Up Program to encourage companies to make voluntary efforts to improve their corporate governance. ㅇ Provide guidelines to encourage listed companies’ voluntary participation in their value-up initiatives ㅇ Offer incentives to outperforming companies - Preferential treatment for inclusion in the Korea Value-up Index - A variety of taxation support ㅇ Support investors in assessing companies’ performance and making investment decisions - Develop the Korea Value-up Index and launch exchange-traded funds (ETFs) - Reflect listed companies’ value-up initiatives in institutional investors’ stewardship codes