South Korea election a minor setback for capital market reform

Opposition hold on National Assembly expected to hinder tax incentives

Changing taxes on inheritance, dividends and capital gains, is likely to prove difficult because it requires approval by the opposition-controlled National Assembly. © AP

LISA KIM and KIM JAEWON, Nikkei staff writers

April 11, 2024 16:45 JST

TOKYO/SEOUL -- South Korea's efforts to boost corporate valuations through a government-led initiative will likely face minor delays, following the ruling party's crushing defeat in legislative elections.

South Korea's main opposition Democratic Party won 161 seats out of 254 directly elected seats in a landslide victory in Wednesday's elections, as voters rendered their verdict on President Yoon Suk Yeol's nearly two years in office, according to National Election Commission data. The total does not include 46 proportional representation seats where the tally is yet to be finalized.