People Power Party launches Stock and Digital Asset Value-up Special Committee

Democratic Party's 'KOSPI 5000 Special Committee' counterpunch

Plan to review introduction of on-demand dividend system

On the 10th, the People Power Party officially launched the 'Special Committee for Stock and Digital Asset Value-up' and decided to review introducing an 'on-demand dividend system.' It will also proceed as planned with the previously announced separate taxation on dividend income. This move is a counter to the Democratic Party of Korea, which in June launched a 'KOSPI 5000 Special Committee' to support President Lee Jae-myung's core economic pledge of 'KOSPI 5000.'

At the first meeting of the committee, People Power Party leader Jang Dong-hyeok said, "The Lee Jae-myung administration proclaims KOSPI 5000, but if it is captured by the KCTU (Korean Confederation of Trade Unions), it can never achieve KOSPI 5000," and added, "We will definitely block the government and ruling party's attempt to delist South Korea through anti-market legislation." The committee chair, Rep. Kim Sang-hoon of the People Power Party, said, "The government forcibly implemented increases in the securities transaction tax and corporate tax without careful review," and said, "The committee's task is to get more money into the 'gukjang' (Korean stock market)."

The People Power Party, centered on the committee, decided to review introducing an on-demand dividend system that would allow dividends to be received like salaries. The intention is to raise companies' dividend payout ratios. Leader Jang also promised to re-pursue separate taxation on dividend income, a pledge he made last month when visiting the Korea Financial Investment Association.

In addition, regarding the digital asset market, it proposed legislation of token securities, the introduction of spot exchange-traded funds (ETFs) for virtual assets (cryptocurrencies), and the establishment of a regulatory framework for stablecoins.

At the meeting, voices were also reported expressing concern about side effects of the Democratic Party's third revision of the Commercial Act, which centers on mandatory cancellation of treasury shares. The People Power Party's position is that instead of amending the Commercial Act, it is necessary to revise the Capital Markets Act to include measures such as introducing a mandatory tender offer system.

Reporter Jung Sang-won top1@hankyung.com