Companies with increased shareholder returns will receive tax breaks, as announced by the South Korean president.

• Yoon stated that companies that "actively increase dividends and advocate for a low-rate separate taxation on shareholders' dividend income tax" will receive these tax benefits, as per a Google translation.
• Additionally, he declared a 25 trillion won ($17.98 billion) aid program for small enterprises impacted by the Covid-19 outbreak.

Yoon Suk Yeol, the South Korean President, has declared tax reductions for corporations that boost shareholder returns through the "corporate value up program."

Yoon stated that companies that "actively expand dividends and push for a low-rate separate taxation on shareholders' dividend income tax" will receive tax benefits, ahead of the government's biannual economic policy announcement.

He stated that we will implement a program that enhances corporate worth and offers chances for asset development to the public.

The "corporate value up program" from the country's financial regulatory body is aimed at increasing the value of undervalued local markets, as mentioned by Yoon.

The "Korea discount" is a result of South Korea's market being undervalued due to factors such as opaque corporate governance practices and low dividend payouts.

The Financial Services Commission aims to prioritize shareholder returns through incentives such as tax benefits and "encourage listed companies to voluntarily set up and disclose valuation enhancement plans."

Yoon announced a 25 trillion won support package for small businesses, stating that they are still facing difficulties.

According to a Reuters translation, he stated that with persistently high interest rates, their interest burden has increased, and both wage and rent costs are also rising.

Since January 2023, the central bank of South Korea has maintained its benchmark interest rate at 3.5%, which is the highest it has been in 15 years.