President Lee Jae-myung met with the heads of the securities firm’s research center and hinted at th..

Meeting with the heads of research centers of securities companies, he/she also emphasized the mandatory retirement of treasury stocks, suggesting a strong push to revitalize the stock market compared to the buzzword “escape innotifyigence net.”

President Lee Jae-myung speaks at a luncheon meeting with the heads of the securities company's research center "Normalization of Capital Markets, the Beginning of a New Leap" held at the presidential office in Yongsan, Seoul on the 18th. [Reporter Kim Hoyoung] — President Lee Jae-myung speaks at a luncheon meeting with the heads of the securities company’s research center “Normalization of Capital Markets, the Beginning of a New Leap” held at the presidential office in Yongsan, Seoul on the 18th. [Reporter Kim Hoyoung]

President Lee Jae-myung met with the heads of the securities firm’s research center and hinted at the possibility of pursuing additional policies to revitalize the stock market. In addition, it was reported that the private luncheon emphasized the necessity of mandatory retirement of treasury stocks.

At a luncheon meeting with heads of research centers at 16 securities companies in Yongsan on the 18th, President Lee stated, “Reasonableness is the life and should be predictable,” and added, “There should be no opaque management and irrational decision-building.” “The revision of the commercial law is realizing the will to increase the rationality of decision-building,” he stated. “If we add a few measures, we will be done improving such structural irrationality.”

In addition to the revision of the commercial law, President Lee has cited mandatory retirement of treasury stocks, expansion of dividfinishs through tax benefits, and prevention of damage to general shareholders due to physical division as measures to revitalize the stock market.

At the meeting, companies’ rational decision-building was cited as an essential requirement for revitalizing the stock market. As unreasonable decisions are created for the interests of a tiny number of major shareholders, the predictability of corporate management has declined, which is why investors are reluctant to invest in domestic stocks.

It also reaffirmed its willingness to boost the stock market through the National Growth Fund, which aims to raise 150 trillion won. He stated, “It will be quite supportful in normalizing the capital market in order to build it possible to turn from financial policy to productive areas,” and added, “We necessary to build it possible for the term ‘return to director’ to be born in order of innotifyigence.”

Later, at a closed luncheon with the head of the research center, it was reported that the policies of “mandatory retirement of treasury stocks” and “separate taxation of dividfinish income” were discussed. Among the stimulus measures suggested by the government and the ruling party, the president’s remarks put weight on the “mandatory retirement of treasury stocks,” which has been introduced.

President Lee Jae-myung is having a luncheon meeting with the heads of the securities company’s research center on the 18th. [Reporter Kim Hoyoung]

During the luncheon, President Lee reportedly emphasized that the principle is to incinerate treasury stocks. Currently, the ruling party is pushing for the passage of a third amfinishment to the commercial law in September, which calls for mandatory retirement of treasury stocks, but the business community is raising concerns that the compulsory retirement of treasury stocks could shake its management rights.

Although there are conflicting opinions on the form of transparency in the purpose of holding treasury stocks and the mandatory retirement plan, which focapplys on securing fairness in the disposal process, President Lee seems to have actually agreed on the necessary for the latter.

President Lee also agreed on the necessary to expand dividfinishs on separate taxation of dividfinish income, while noting that balance such as “tax cuts for the rich” should be considered.

Separate taxation on dividfinish income is a system that provides some tax cuts for dividfinishs received from companies that give large dividfinishs. The heads of the research center who attfinished pointed out that the dividfinish yield on the domestic stock market is low and explained the necessary for a separate taxation system for dividfinish income.

In response, President Lee reportedly replied that the separate taxation benefits should not be concentrated on “tax cuts for the rich,” which are concentrated on major shareholders, and that a reorganization plan should be created in consideration of a decrease in tax revenue. Currently, political circles are discussing the dividfinish payout ratio standards of companies subject to separate taxation and the level of separate taxation rates.

In addition to stock market stimulus measures such as mandatory retirement of treasury stocks and the introduction of a discovery system, the financial investment indusattempt emphasizes the necessary for a prompt announcement of guidelines on directors’ duty to be faithful to shareholders.

Lee Nam-woo, chairman of the Korea Corporate Governance Forum, stated, “The government and financial authorities should come up with guidelines quickly as the court is having difficulty interpreting the duty of directors to be faithful despite the revision of the commercial law,” adding, “Even if the principle of retirement of treasury stocks is introduced, foreign speculative capital is unlikely to occupy the Korean board of directors.”