The KOSDAQ market has escaped from the situation where the number of stocks that fell exceeded those that rose for the first time in 7 trading days. This seems to have halted the 'selling' trend that appeared as the government of Lee Jae-myung's first tax reform plan includes raising the security transaction tax rate and tightening the criteria for major shareholders who must pay capital gains tax.
According to the Korea Exchange on the 30th, the KOSDAQ index is moving around 807 as of 1:30 p.m. The level has risen about 0.3% from the previous day. Among the KOSDAQ stocks, more than 960 are rising in price. More than 660 stocks are trading at lower prices than the previous day. About 90 stocks are unchanged.
It is the first time since the 21st that there are more rising stocks than falling stocks in the KOSDAQ market. From the 22nd, there has been a situation where the number of falling stocks exceeded that of rising stocks for 6 consecutive trading days, regardless of the KOSDAQ index trend. Even on the previous day when the KOSDAQ index recorded a slight increase, there were 852 falling stocks, which was more than the 744 rising stocks.
In the KOSDAQ market, the number of falling stocks exceeding the number of rising stocks for 6 consecutive trading days is the longest since the start of the Lee Jae-myung administration. This situation did not occur from mid-March to mid-April, even when there was significant volatility due to the impeachment trial of former President Yoon Suk-yeol, the full resumption of short selling, and the announcement of reciprocal tariffs by U.S. President Donald Trump.
Next month, as the deadline for the tariff exemption under the Trump administration approaches and earnings reports for the second quarter of this year (April to June) are released, various factors are at play. However, coincidentally, since the first tax reform plan of the Lee Jae-myung government came under scrutiny, the situation has continued where the number of falling stocks exceeds that of rising stocks. Notably, unlike the KOSPI market, the KOSDAQ market, where individual investors have a large holding and transaction ratio, has consistently shown more falling stocks, indicating a significant impact from the tax reform plan.
The first tax reform plan of the Lee Jae-myung government is expected to include an increase in the security transaction tax rate and a rise in corporate tax. In particular, the government and the Democratic Party of Korea decided to lower the threshold for taxing capital gains tax for major shareholders from 5 billion won to 1 billion won. The threshold had been raised from 1 billion won to 5 billion won during the Yoon Suk-yeol administration, which is now labeled 'a tax cut for the wealthy,' and will be rolled back.
There are concerns that the market may see a repeat of selling pressure to avoid designation as a major shareholder at year-end. On the other hand, the proposed method to separate dividends, which were expected as a 'carrot,' from comprehensive income for taxation has not garnered consensus between the government and the ruling party.
Even within the ruling circle, voices of concern are being raised. Lee So-young, a member of the Democratic Party of Korea, said at the 'Democratic Party KOSPI 5000 Special Committee's Korea Exchange On-site Meeting' held the previous day, "While it is said that funds concentrated in real estate should move to the stock market, who would invest in the stock market if the tax reform is announced in the opposite direction?"
The government plans to announce the confirmed tax reform plan after going through the Tax Development Advisory Committee on the 31st.