South Korea to cut corporate, dividend income tax to boost shareholder returns
SOUTH Korea will provide tax cuts for companies that raise shareholder returns and also cut taxes on dividend income for shareholders in the firms, the finance minister said on Tuesday (Mar 19).
Finance Minister Choi Sang-mok said specific details of the tax cuts would be determined and announced after hearing different opinions at a meeting with market experts.
South Korea last month unveiled a corporate reform plan, dubbed the “Corporate Value-up Programme”, aimed at lifting the value of Seoul-listed companies by encouraging firms to boost shareholder returns, such as dividends.
The minister’s comments come after criticism from investors that the plan did not go far enough to changes corporate behaviour, since it lacked penalties and tax incentives.
The government will finalise by early May guidelines for listed firms to refer to, Choi said. These were originally slated to be announced within the first half of the year. REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Europe: Stoxx 600 logs best day in three months as banks shine
US: Stocks rally after strong tech results
Mixed trading in Asia as investors watch for further macro data; STI down 0.2%
Vietnam delays launch of new stock trading system
Hong Kong bourse regains favour on hopes of a market revival
Asia: Markets rise as strong US tech earnings offset poor data