Lee vows policy overhaul to spur dividend payouts

South Korean President Lee Jae-myung said on Wednesday that the government is preparing tax and regulatory reforms to spur dividend payouts as part of efforts to create a more attractive environment for long-term stock investors.

During a visit to the Korea Exchange, Lee pointed out that Korean listed companies are stingier with dividend payouts than their Chinese peers, making it difficult to pursue long-term gains in blue-chip stocks.

“Other countries live off interim dividends from holding quality stocks,” he said in a town hall meeting at the Korea Exchange. “We don’t even come close to China in that regard.”

He reaffirmed his commitment to revitalizing domestic stock markets by enhancing capital market transparency.

“The most important task is to eliminate, or at least ease, this lack of transparency,” he noted.

On Wednesday, the Kospi added 1.23% to close at 2,907.04, extending what market participants have dubbed a “honeymoon rally” since Lee took office last week.

It marked the first time for the benchmark stock index to finish above the level since mid-January 2022.

Write to Yeonhee Kim at yhkim@hankyung.com