President Lee Jae-myung works at his office in Yongsan. (Image from President Lee’s SNS channel)
SEOUL, Nov. 12 (Korea Bizwire) — President Lee Jae-myung on Tuesday instructed his economic team to explore new tax benefits for long-term retail investors, separating them from large shareholders to encourage stable investment while avoiding controversy over tax breaks for the wealthy.
During a Cabinet meeting at the presidential office in Yongsan, Lee asked Deputy Prime Minister and Finance Minister Koo Yun-chul whether South Korea currently provides adequate tax incentives for long-term investors.
When Koo replied that the system “lacks sufficient benefits,” Lee responded, “Please review detailed measures to give advantages to ordinary investors who hold their shares for the long term.”
Lee stressed that major shareholders—those holding controlling stakes in companies—should be excluded from such incentives. “Large shareholders already own their stakes for management control, so including them could spark criticism of tax cuts for the rich,” he said.
The day’s close of the benchmark Korea Composite Stock Price Index (KOSPI) is displayed on a screen ahead of an event to celebrate the KOSPI’s new record high, at the Korea Exchange on Oct. 27, 2025. (Yonhap)
The president also commended the National Tax Service for its recent efforts to improve non-tax revenue management and pursue delinquent tax collections. “From the perspective of tax justice, managing unpaid taxes is as important as managing non-tax revenues,” he said, noting that such work “contributes meaningfully to job creation.”
Lee’s remarks come as unpaid national taxes have exceeded 110 trillion won (US$79 billion), prompting the tax agency to create a special task force dedicated to tracking high-value delinquents.
Turning to the corporate sector, Lee praised South Korea’s major conglomerates for their strong performance, saying they “benefit most from national policies and are doing well lately.”
He added that long-standing concerns over technology theft from smaller suppliers “have largely disappeared,” but cautioned that occasional cases of unfair practices persist.
“When companies exploit monopolistic or oligopolistic positions for unjust gain, it’s like husks mixed in the rice—they must be removed,” Lee said, urging authorities to remain vigilant. “We must ensure that no company squeezes weaker partners to enrich itself.”
M. H. Lee (mhlee@koreabizwire.com)
