The Korea Times

Up to 200 listed firms face new tax rule targeting stock price suppression

The government will introduce a new system aimed at curbing listed companies’ largest shareholders from keeping stock prices artificially low to reduce inheritance and gift tax bills, the Ministry of Finance and Economy said Tuesday. It estimates that as many as 200 listed companies could be subject to the rules, which take effect next April. The ministry plans to revise the Inheritance Tax and Gift Tax Act, requiring shareholders of companies deemed to have suppressed their stock prices to pay at least 30 percent more in inheritance and gift taxes when transferring shares to related parties. The measures were included in the ministry’s 2026 tax reform plans announced Monday. Under current inheritance and gift tax rules, the taxable market value of KOSPI- and Kosdaq-listed shares is calculated using the average closing price over the two months before and after the date of the transfer. Because lower share prices reduce tax burdens for major shareholders, critics have long blamed the rule for encouraging owners to keep stock prices low, contributing to the chronic undervaluation of K

Aug 4, 2026By Jun Ji-hye

Up to 200 listed firms face new tax rule targeting stock price suppression

Others

Real estate tax overhaul to have limited market impact: analysts

The government’s real estate tax overhaul is unlikely to have a significant impact on the housing market or construction stocks, as the measures are broadly in line with market expectations, according to analysts Tuesday. The changes could, however, prompt some multiple-home owners and holders of high-priced properties to put homes up for sale to reduce their tax burden, while expanded tax incentives for regional investment and second homes could provide some support for property markets and construction stocks outside the capital region. The assessments came a day after the Ministry of Finance and Economy announced its 2026 tax reform plans aimed at protecting single-home owners who actually live in their properties while raising the comprehensive real estate tax and capital gains tax burden on nonresident owners and high-priced homes. The government also plans to expand tax incentives for second homes in regional areas and corporate investment outside the capital region. Kiwoom Securities analyst Shin Dae-hyun said the tax changes are unlikely to meaningfully affect the market, as h

Aug 4, 2026By Jun Ji-hye

Real estate tax overhaul to have limited market impact: analysts

Policy

Gov't targets high-value, non-owner-occupied homes in tax overhaul

The government will significantly raise taxes on high-value homes not occupied by their owners by scaling back tax benefits for such properties, in what it calls a bid to promote greater fairness based on ownership and residency status, the finance ministry said Monday. The move is part of President Lee Jae Myung’s efforts to normalize the housing market, stabilize home prices and support "genuine" homebuyers. The government also plans to overhaul the tax system with a focus on fostering new growth engines, promoting balanced regional development and supporting low- and middle-income households. Those measures are part of the 2026 tax overhaul prepared by the Ministry of Finance and Economy. The key focus of the reform is to strengthen taxation on high-value and non-owner-occupied homes. The government plans to overhaul the capital gains tax and comprehensive real estate tax systems to ease the burden on genuine homebuyers while effectively increasing the tax burden on owners of homes they do not occupy and multiple-home owners. "We will overhaul property tax rules to establish a housin

Aug 3, 2026By Jun Ji-hye

Gov't targets high-value, non-owner-occupied homes in tax overhaul

Cryptocurrency

Rising stablecoin outflows raise investor protection, FX concerns

Stablecoin outflows from Korea to overseas exchanges topped 500 billion won ($346 million) in June, even as the crypto market underwent a correction, an opposition lawmaker said Sunday. The amount reached a level comparable to Korean investors’ net purchases of overseas stocks. The persistent flow of funds abroad to access high-risk derivatives, real-world assets (RWA) and decentralized finance (DeFi) services unavailable in Korea is raising new concerns over investor protection and foreign-exchange management. According to data provided by the Financial Supervisory Service (FSS) to Rep. Lee Jong-wook of the main opposition People Power Party, stablecoins worth 2.76 trillion won were transferred from the five domestic crypto exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — to overseas exchanges in June. That compared with 2.2 trillion won in stablecoins transferred from overseas exchanges to domestic platforms, resulting in a net outflow of 560.3 billion won. That was equivalent to 77.6 percent of Korean investors’ net purchases of overseas stocks in that month, according

Aug 2, 2026By Jun Ji-hye

Rising stablecoin outflows raise investor protection, FX concerns

Others

Korea's return to US currency watch list unlikely to shake FX market: analysts

Korea’s renewed inclusion on the U.S. Treasury Department’s currency monitoring list is unlikely to have a significant impact on the local foreign exchange market, analysts in Seoul said Friday, dismissing the semiannual report as a largely routine event with limited immediate policy implications. “The report drew much more attention early in President Donald Trump’s term last year. But it doesn’t result in any concrete measures, so it has become something of an old issue," said Lee Jung-hoon, an analyst at Daishin Securities. "I don’t expect it to have much impact on the market." Kwon A-min, an analyst at NH Investment & Securities, also said the Treasury's foreign exchange report has become increasingly formulaic in recent years, shedding much of the political undertone it once carried. "I expect little impact on the market from the report," Kwon said. The Treasury, in its Report to Congress on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, kept Korea on its currency monitoring list alongside China, Japan, Taiwan, Thailand, Singa

Jul 24, 2026By Jun Ji-hye

Korea's return to US currency watch list unlikely to shake FX market: analysts

Others

KOSPI reclaims 7,000 level as Alphabet lifts AI optimism

KOSPI surged back above the 7,000 level after five trading sessions on Thursday as Alphabet’s stronger-than-expected capital spending outlook reignited optimism over the artificial intelligence (AI) boom. The Kosdaq also jumped sharply, triggering a temporary halt on program buying orders. The benchmark KOSPI opened 2.44 percent higher at 6,963.35, up 165.65 points from the previous session, and ended at 7,096.89, gaining 299.19 points, or 4.40 percent. The rally followed Alphabet, Google’s parent company, raising its 2026 capital expenditures (CAPEX) guidance, a move that eased concerns over a slowdown in AI-related investment momentum. “Alphabet lifted its 2026 CAPEX forecast to $195 billion-$205 billion from $180 billion-$190 billion,” said Kim Joong-han, an analyst at Samsung Securities. “The higher spending guidance showed that concerns over a slowdown in the AI cycle and capital expenditure were overdone.” He added that enterprise demand momentum is likely to strengthen further in the second half. Amid renewed AI optimism, shares of Samsung Electronics and SK hynix, the c

Jul 23, 2026By Jun Ji-hye

KOSPI reclaims 7,000 level as Alphabet lifts AI optimism

Economy

Korea's economy grows 0.6% in Q2 on strong chip exports, beating forecasts

Korea’s economy expanded 0.6 percent in the second quarter from the previous quarter, extending its stronger-than-expected recovery on the back of booming semiconductor exports and a rebound in domestic demand despite Middle East-related risks, the Bank of Korea (BOK) said Thursday. The back-to-back surprise expansions in the first and second quarters have raised the prospect of annual growth exceeding 3 percent, which would mark the fastest pace in five years. Preliminary data from the central bank showed that real gross domestic product (GDP) rose 0.6 percent in the April-June period. The reading beat both the median market forecast of 0.3 percent and the BOK’s own projection of 0.2 percent for the quarter. Quarterly growth rebounded sharply from a 0.1 percent contraction in the fourth quarter of last year to 1.8 percent in the first quarter, before maintaining a solid pace in the second quarter despite a high base effect. The expansion was supported by a 1.4 percent increase in exports, driven by semiconductors and machinery and equipment, while private consumption rose 0.4 percen

Jul 23, 2026By Lee Hyo-jin and Jun Ji-hye

Korea's economy grows 0.6% in Q2 on strong chip exports, beating forecasts

Others

Won tests foothold in 1,400s as dollar risks linger

The Korean won has recovered from its weakest level since the Asian financial crisis, trading below the psychologically important 1,500-won-per-dollar level for the first time in three weeks, analysts said Wednesday. The move was driven by easing foreign investor rebalancing and expectations of increased dollar inflows, they said. Still, they cautioned that further gains in the won may be limited, with geopolitical tensions and the possibility of higher U.S. interest rates likely to keep the dollar supported. The won closed at 1,555.8 per dollar on July 2, its weakest level since March 2009 based on onshore trading, according to the Seoul foreign exchange market. It fell below the 1,500 won mark on July 8, closing at 1,498.5, before briefly rebounding to 1,506.1 won the following day. The currency strengthened again to finish at 1,493 on July 14 and has since remained in the upper-1,400 won range. On Wednesday, it ended onshore trading at 1,480.1. The average won-dollar exchange rate based on onshore closing prices stood at 1,488.6 won in the third week of July, falling below the 1,500 wo

Jul 22, 2026By Jun Ji-hye

Won tests foothold in 1,400s as dollar risks linger

Law & Crime

Korea busts record 1 ton of smuggled drugs in 1st half of 2026

Korean customs authorities seized a record 1,007 kilograms of narcotics intended for the domestic market in 767 cases during the first half of the year, the Korea Customs Service (KCS) said Wednesday. While the number of cases rose 24 percent from a year earlier, the total weight fell 62 percent because last year's figures included drugs merely transiting through Korea. Excluding those transit shipments, this year's haul was the largest on record for drugs destined for the domestic market. KCS Commissioner Lee Jong-wook said during a media briefing that the increase was driven by traveler smuggling, vowing to step up inspections of arriving passengers by expanding a multilayer screening system, including random inspections immediately after arrival and X-ray screening of all checked baggage. The number of traveler smuggling cases jumped 79 percent, while the amount seized rose 23 percent from a year earlier. By contrast, seizures through international mail dropped sharply after customs strengthened secondary inspections at five international mail centers late last year, prompting traffic

Jul 22, 2026By Jun Ji-hye

Korea busts record 1 ton of smuggled drugs in 1st half of 2026

Companies

Koramco bets on sector expertise amid property downturn

Asset managers’ ability to source, structure and manage investments has become increasingly critical amid high interest rates and a prolonged property market correction, which have heightened uncertainty across Korea’s real estate investment industry. Cheong Seang-hoi, CEO and president of Koramco REITs Management and Trust, described the current market environment not simply as a downturn, but as a proving ground for asset managers. In a recent interview with The Korea Times, he said Koramco views the ongoing market correction as both a crisis and an opportunity, adding that the company is focusing not on one-off deals or short-term gains, but on a structural overhaul of its operating model to navigate the uncertainty. “When markets are strong, differences in performance among asset managers are less noticeable. But when markets become volatile, outcomes depend on which assets they choose, how they structure investments and how effectively they manage them after acquisition,” he said. “Interest rates remain elevated, liquidity has dried up and assets are being repriced. In suc

Jul 22, 2026By Jun Ji-hye

Jun Ji-hye

Read more

Up to 200 listed firms face new tax rule targeting stock price suppression

Real estate tax overhaul to have limited market impact: analysts

Gov't targets high-value, non-owner-occupied homes in tax overhaul

Rising stablecoin outflows raise investor protection, FX concerns

Korea's return to US currency watch list unlikely to shake FX market: analysts

KOSPI reclaims 7,000 level as Alphabet lifts AI optimism

Korea's economy grows 0.6% in Q2 on strong chip exports, beating forecasts

Won tests foothold in 1,400s as dollar risks linger

Korea busts record 1 ton of smuggled drugs in 1st half of 2026

Koramco bets on sector expertise amid property downturn

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