In-depth analysis of tax reforms for the 2026 economic growth strategy and domestic capital market development: policy implications and prospects of dividend income decoupling and long-term investment incentives
1. Introduction: The Macro Context of Structural Undervaluation and Tax Reform in the Korean Capital Market The Korean economy is at a critical juncture as it moves from a period of high growth to a period of maturity and shifts the paradigm of wealth accumulation from saving to investment. However, the Korean stock market has suffered from a chronic undervaluation, the so-called "Korea Discount," which has hindered household wealth accumulation and raised the cost of financing for businesses. To address this structural problem, the Yoon administration has made capital market development a key priority since its inauguration, and...