Starting this year, the security transaction tax rate will be reduced in the domestic stock market. Additionally, the dividends process will be changed, and general public funds will be listed on the Korea Exchange like exchange-traded funds (ETFs).
On the 3rd, Yeom Dong-chan, a Research Institute at Korea Investment Securities, explained 'three changes that domestic stock investors should be aware of in 2025.'
The first change is the reduction of the transaction tax rate. He noted, "The security transaction tax rate for the KOSPI and KOSDAQ will be reduced from 0.18% to 0.15%. The reduction of the transaction tax rate has the advantage of increasing market transaction volume, but it also presents the possibility of increased volatility due to the ease of high-frequency trading."
Last year, the Korean stock market showed weakness, and due to the rise of overseas and virtual assets, transaction volumes decreased, but the tax rate reduction is expected to play a role in boosting transaction volumes.
The second change is the advancement of the dividends process. Previously, dividends were determined after the dividend record date, and investors had to make investment decisions without knowing the dividends. However, with the improvement of the process, the determination of dividends will now precede the dividend record date, allowing investors to know the dividends before making investment decisions.
Yeom noted, "For this procedural change, corporations must amend their articles of incorporation, and about 66% of corporations listed on the KOSPI 200 have amended their articles." He added, "Unlike before, when the dividend record date was the same for all corporations at the end of December, the differing dividend record dates for each corporation will increase the points that require attention."
He added, "The dividends will be finalized at the shareholders' meeting at the end of March, so it is essential to check the amendments to the corporations' articles of incorporation and the dividend record date."
The final change is the listing of general public funds, which will take effect in the second quarter. With public funds set to be listed on the market like ETFs, a new class of publicly traded general funds will be established following the designation of innovative financial services in November last year.
Yeom noted, "In the first quarter of this year, the exchange and the depositary's systems will be reorganized, and actual transactions are expected to start in the second quarter," adding that "This will be an opportunity for general public funds, which have not significantly increased their net worth compared to ETFs."