The financial authorities are considering expanding tax benefits for long-term investments in stocks and other assets to encourage capital market investments. A new KOSDAQ investment fund will also be established within the National Growth Fund, with investments set to begin next month.
Lee Ok-yeon, chairman of the Financial Services Commission, stated on the morning of September 18 at a conference marking the 29th anniversary of the Capital Market Research Institute in Seoul's Yeouido Conrad Hotel, "We will strengthen the long-term and stable supply and demand foundation in the stock market."
Lee emphasized, "Long-term funds linked to personal asset formation, rather than short-term trading and borrowing, should serve as the backbone of the market. We will refine products and systems to make long-term investment a rational choice through the launch of the National Growth Fund and productive finance ISAs."
He also highlighted the need to work with relevant departments to ensure that the financial tax system rewards longer holding periods with greater benefits.
The foundation for supply and demand in the KOSDAQ market will also be strengthened. Lee noted, "We will create an environment where long-term funds from institutions, such as pension funds and policy funds, can flow into the KOSDAQ, and a KOSDAQ investment fund will be established within the National Growth Fund, with investments expected to commence in October."
A new entity, Korea Strategic Technology Partners, will be established to manage long-term, large-scale investments in future strategic technologies. This organization will provide funding for key source technology areas while expanding secondary market investments in the financial investment sector to support companies' growth before they enter the KOSDAQ.
Hwang Seong-yeop, chairman of the Korea Financial Investment Association, remarked, "While funding for startups has become more active, there is still a lack of patient capital to support growth in subsequent stages. There is a need for policy support to foster a long-term investment culture."
* This article has been translated by AI.
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