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2025-08-01 09:43:45
[South Korean stock market hit by tax increase proposal, Seoul Composite Index fell more than 3%] South Korea's benchmark stock index recorded its biggest drop since early April, with SK Hynix and Hanwha Aerospace falling the most. The South Korean government previously proposed to increase taxes on companies and stock investors to boost fiscal revenue. According to a proposal released by the South Korean Ministry of Finance on Thursday, the capital gains tax threshold for stock holdings will be reduced from 5 billion won to 1 billion won, and the stock transaction tax will be raised from 0.15% to 0.2%. According to the proposal, the top corporate tax rate will be raised from 24% to 25%, reversing the tax cuts of the previous government. The corporate tax rate will be increased by 1 percentage point at all levels. Timefolio said that with the reduction in the capital gains tax threshold, the number of taxable investors will increase significantly, so the stock market may see a sell-off.
