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2025-08-01 16:36:52
[South Korea's stock market plummeted 3.9%! The government denied that tax reform was the culprit, and investors' doubts grew] ⑴ On Friday (August 1st) Beijing time, a spokesman for the South Korean presidential office said that the decline in domestic stock markets that day was unlikely to be caused by the annual tax law revision announced the day before. ⑵ The spokesman stressed that there is currently no discussion about revising the proposed measures. ⑶ However, South Korea's benchmark stock index KOSPI fell 3.9% on Friday, the largest single-day drop since April 7th. ⑷ Previously, the South Korean government proposed to increase corporate income tax and stock investment tax. ⑸ This proposal has aroused investors' doubts about the government's promotion of market reforms and is widely regarded as an important factor in the stock market decline. ⑹ The statement of the presidential office is in sharp contrast to market sentiment. ⑺ Market trading psychology is obviously affected by expectations of tax reform, rather than being irrelevant as the presidential office believes. ⑻ This disagreement highlights the huge gap between the government and investors in policy interpretation and market impact assessment.
