Gov¡¯t to offer tax benefits to investors in Kosdaq market

As part of its efforts to facilitate the financing of promising venture companies, the government has decided to offer tax benefits to investors in the Kosdaq market. The government will also ease regulations related to Kosdaq listing to allow companies with high technology but in poor financial condition to enter the market.

President Kim Dae-Jung announced these measures Wednesday when he met with an advisory committee to APEC industrialists held in Bandar Seri Begawan, the capital of Brunei. At the meeting, President Kim gave a speech on the new economy and ways to promote the Kosdaq market¡¯s role in developing small- and medium-sized companies. The president suggested that APEC member countries establish a cooperative network for over-the-counter stock markets and exchange experiences and know-how to promote venture firms and bourses.

In particular, he proposed that the countries operate a permanent council for second stock markets in the region and set up specialized subcommittees on listing, notification, transaction, settlement and computerization. He suggested that in line with the globalization trend of securities markets, each APEC member seek ways to ease related regulations and standardize the transaction system and computerization.

An official of the Finance and Economy Ministry said that the government is working on a plan to reform the current Kosdaq system to give priority to promising venture firms in the deliberations for listing and ease regulations for their registration. He pledged that although the Kosdaq market is currently in the doldrums, the government will continue to offer support for venture companies and is holding consultations on a plan to offer tax benefits.