South Korea introduces financial support measures to alleviate impact of high interest rates.

As high-interest rates continue to contribute to economic slowdown and job market challenges globally, South Korea has taken proactive measures to support stock investors and small business owners facing the brunt of these rates. In an effort to provide relief, the government plans to implement a package of financial policies, including the elimination of the capital gains tax on stock investments exceeding 50 million won ($37,359.99). This move aims to alleviate financial pressure on individuals and businesses, particularly amid the upcoming general elections.

Additionally, South Korea will enhance stock short-selling rules to ensure a fair playing field between retail and institutional investors. To address the impact of high-interest rates, local banks will return a total of 1.6 trillion wons ($1.20 billion) of interest income to small businesses and self-employed individuals with existing loans. The government also announced a “credit rating pardon” for up to 2.9 million individuals facing overdue repayments, providing them with an opportunity for a fresh financial start. This approach stands in contrast to the challenges faced by small businesses globally due to high interest rates, with many experiencing closures and layoffs.