South Korea Plans Tax Incentives for Long‑Term Stock Investment

South Korean President Lee Jae‑myung on 12 November 2025 in Seoul ordered his administration to design tax incentives aimed at long‑term stock investment. The directive was given to Vice Prime Minister for Economy and Finance Koo Yun‑cheol.

The incentives will target individual investors, lowering the dividend tax (share of corporate profit) to 25 % and introducing differential withholding tax rates based on holding periods. The government also plans to adjust contribution limits and grant tax exemptions for pension funds and individual savings accounts.

The measures aim to channel more capital into the domestic market while avoiding controversy over tax breaks for large shareholders. A previously proposed revision of capital‑gain tax (tax on profit from asset sales) was cancelled after investor opposition, underscoring the focus on long‑term shareholders.