South Korea Proposes Stock Price Suppression Prevention Bill on July 21, With 73% of KOSPI Companies Trading Below Book Value

According to News1, Kim Min-guk, CEO of VIP Asset Management, proposed on July 21 a bill aimed at preventing major shareholders from deliberately suppressing stock prices to reduce inheritance and gift taxes. The legislation would set a floor valuation of 80% of net asset value when major shareholders transfer listed shares, applying standards currently used for unlisted stocks. Kim noted that 73% of KOSPI-listed companies trade below 1.0 price-to-book ratio, and highlighted that the tax incentive structure has historically encouraged owners to keep valuations low, with share prices often surging when succession news emerges.
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