South Korea Reduces Targeted Companies in Low-PBR Tax Reform from 1,291 to Around 200

According to Korea Exchange simulation and the Ministry of Economy and Finance on August 5, South Korea's 2026 tax reform plan reduces the scope of companies subject to inheritance and gift tax reassessment from 1,291 firms with PBR below 0.8 to approximately 200 firms. The government expanded the averaging period for stock price valuation from the current two months to a maximum of six years and six months, aiming to prevent intentional stock price suppression by major shareholders. Companies meeting the criteria face a 30% premium on existing valuations for inheritance and gift tax purposes.
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