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investor-friendly tax reforms such as separate taxation of dividend income. He pointed out that Korea’s capital market reforms have begun to deliver tangible results, noting that the KOSPI has more than tripled since the launch of the new administration and that the market capitalization of the Korean stock market has risen to rank among the world’s top six or seven markets. In addition, foreign investment in Korean government bonds has continued to increase steadily following their inclusion in the FTSE World Government Bond Index (WGBI) in April this year, with cumulative net inflows reaching approximately USD 18.7 billion as of June 4....
a separate taxation scheme for dividend income. He went on to explain that the combination of Korea’s industrial competitiveness and capital market reforms has already produced tangible results. Since the launch of the new administration in June 2025, the KOSPI index has risen by more than 170%, recording the highest increase among major economies, while the market capitalization of the Korean stock market has climbed six places to become the seventh largest in the world. In addition, following the successful inclusion of Korean government bonds in the World Government Bond Index (WGBI) in April 2026, approximately USD 10.9 billion in new...
the heightened macroeconomic volatility, coordinating major policy tools—including fiscal policy, taxation, finance, and foreign exchange—has become paramount. This inaugural meeting thus aims to find the optimal policy mix and solidify a framework for close cooperation. The participants shared the view that, as uncertainty surrounding the Middle East situation has persisted for five weeks, there are growing concerns about its impact not only on the real economy and financial markets but also on vulnerable groups. In this regard, they underscored the importance of the swift passage and execution of the supplementary budget proposal recently...
(Fiscal) Implement performance-oriented fiscal management through reforms in fiscal operations and expenditure structures. - (Taxation) Expand the revenue base by tightening tax arrears management and streamlining tax exemptions and deductions. - (Public procurement) Innovate procurement administration by scaling up innovative procurement, preventing abnormally low bids, and reforming the advance payment system. - (Public sector) Enhance productivity and public value, with functional reform of public institutions and their strengthened role as model employers. Please refer to the attached files.
Under the government reorganization, the Ministry of Economy and Finance (MOEF) will be responsible for the formulation and coordination of economic policies; the management of currency, foreign exchange, the national treasury, government accounting, taxation, international finance, and oversight of public institutions; and the administration of matters related to economic cooperation and state-owned properties. The Ministry of Planning and Budget, spun off from the former Ministry of Economy and Finance, will assume responsibility for the formulation of mid- to long-term national strategies and fiscal policies; the preparation, execution,...
Third, in order to mitigate double taxation on dividends received by domestic parent companies from their overseas subsidiaries, the Government will raise the income exclusion ratio for such dividend income from 95% to 100%. With the implementation of these tax support measures, it is expected that a substantial portion of individual investors’ overseas stock holdings – amounting to USD 161.1 billion as of the end of the third quarter of 2025 (based on the International Investment Position) – will be redirected toward domestic investment or hedged against FX risk, thereby leading to an expansion in the supply of foreign currencies. The...
of its government organizations related to economic cooperation. He also expressed his hope to further develop close cooperative relations with Korea, a leading country in advanced technology, and requested the Korean government’s continued interest and support. * Vietnam merged its Ministry of Finance (responsible for taxation, etc.) and Ministry of Planning and Investment (the main investment authority) into a single Ministry of Finance in February 2025. In response, DPM Koo stated that despite the rapidly changing global cooperation environment, it is necessary for both countries to maintain strong collaboration* in various areas such...
– covering fiscal resources, human resources, taxation, and R&D – and, through collaboration among all economic actors, will deliver tangible results within a short period of time. In response to Moody’s inquiry regarding the impact of demographic changes, including population aging, on Korea’s medium- to long-term fiscal capacity, he highlighted performance-based fiscal management that provides targeted support where necessary while decisively restructuring unnecessary expenditures. This strategy, he said, will ensure the sustainability of fiscal resources to meet long-term demands while fulfilling their essential role as a catalyst for...
1) Introduce separate taxation on dividend income from companies that pay high dividends. 2) Revise the tax incentive scheme for promoting investment and mutually beneficial cooperation. 3) Grant tax exemption on investment income earned by the Bank for International Settlements (BIS) from investments in Korean won-denominated assets. 4) Expand tax support for universities acquiring substitute income-generating assets. 5) Shore up tax incentives for venture investments through private venture capital master fund. 6) Extend the applicable period for income deductions on investments in venture businesses. 7) ...
4 (International Taxation) Deputy Minister Choi highlighted the need to sustain international cooperation and dialogue on international tax matters. In particular, with regard to the G7 agreement on a global minimum tax reached in June this year, he stated that political consensus among Inclusive Framework (IF) members on concrete implementation plans is crucial in guaranteeing fair international taxation. He also expressed support for strengthening the tax capacities of developing countries and urged international organizations to develop policy measures to address tax inequality. Korea, along with Australia, was invited to attend the...