The Kospi is down by 1.03% this year, while Japan's benchmark Nikkei Stock Average is up by 19.89%. (Nikkei montage/Source photos by Reuters and EPA/Jiji)

South Korea's plan to boost stock market disappoints investors

Chaebol benefit from low share prices due to high inheritance tax, experts say

LISA KIM, Nikkei staff writer

March 4, 2024 06:00 JST

TOKYO -- The South Korean financial regulator's new plan to shore up the stock market has disappointed investors who expected more concrete changes.

The first part of the much-awaited initiative, announced on Feb. 26, fell short of tackling the fundamental cause of the "Korea discount" phenomenon of relatively low valuations: a high inheritance tax that incentivizes large family-run conglomerates to keep stock prices low.