Blocking Stock Price Suppression: Listed Stock Valuation Method to Be Revised [Second-Half 2026 Economic Growth Strategy]

[Financial News] The government is moving quickly to overhaul regulations aimed at easing the Korea Discount and advancing the capital market. The key measures include revising the valuation method for listed stocks to block incentives for so-called stock price suppression during inheritance and gift transfers, as well as shortening the settlement cycle for stock transactions. 
On the 14th, relevant ministries jointly announced the second-half 2026 economic growth strategy, which includes these measures.
The government will first review changes to the valuation method for listed stocks used in calculating inheritance and gift taxes. Under the current Inheritance and Gift Tax Act, the average closing price over the two months before and after the valuation date is recognized as market value. The government plans to overhaul the overall valuation method to prevent deliberate efforts to keep stock prices artificially low during the valuation period.
The Corporate Value-up Policy will also be strengthened. The government plans to disclose a list of low-PBR companies, but if a company releases a corporate value enhancement plan that includes measures to improve its PBR, the disclosure of its name will be deferred for a certain period. It also plans to launch a new productive finance ISA with expanded tax benefits and allow ETF investments through foreign investors’ omnibus accounts, broadening the domestic stock market’s demand base.
Improvements to market infrastructure and foreign exchange rules will move forward in parallel. The government will prepare a roadmap by October to shorten the stock settlement cycle from the current T+2 to T+1. It also plans to establish an offshore won settlement system in January next year, expanding the scope of won management for foreign investors. In addition, it will push ahead with the introduction of a KOSDAQ listing and delisting system, expanded TEL system listings, and financial support for venture companies at each stage of growth.
Along with capital market reforms, the government will also expand the long-term investment base for national strategic industries. It plans to establish a Sovereign Wealth Fund (SWF) under KIC and reorganize it into a comprehensive sovereign wealth fund.
The SWF will provide long-term patient capital, focusing on core industries such as the three major mega-projects and financial infrastructure, as well as economic security areas including overseas supply chains. The government will also promote co-investment with overseas sovereign wealth funds. Existing entrusted foreign exchange reserve accounts and the newly created strategic investment account will be strictly separated in accounting, ensuring independence between foreign exchange reserve management and policy investment.
[email protected] Kim Chan-mi Reporter