SEOUL: South Korea on Thursday proposed a series of tax cuts for companies, workers and retail investors in stocks to support private-sector led economic growth as President Yoon Suk-yeol had pledged in the election campaign.
To revitalize the stock market that has slumped nearly 20 per cent so far this year, the government proposed to exempt capital gains taxes on retail investments, except for holdings worth more than 10 billion won in any one stock. A maximum corporate tax rate of 22 per cent in South Korea would put it on par with the average of countries in the Organization for Economic Cooperation and Development , which the ministry said will end up benefiting"shareholders through dividends, and consumers through lower prices of products and services".
Exports in June grew at their slowest rate in 19 months, the January to June trade deficit set a record, and soaring import costs are hurting private consumption which makes up about half of the economy.