Core Viewpoint - The newly revised Anti-Unfair Competition Law of the People's Republic of China will officially take effect on October 15, 2025, focusing on regulating new forms of competition issues in the digital economy, such as false transactions and malicious returns, which disrupt market order [1] Group 1: Regulation of Unfair Competition - The law addresses the issues of false transactions and malicious returns, which have become survival tactics for some e-commerce platforms, indicating a need for a profound transformation in the competitive order of the digital economy [1] - The revised law aims to establish a standard of integrity in digital competition, requiring operators to shift from a speculative mindset based on data manipulation to a long-term approach that relies on genuine service quality to gain consumer recognition [2] Group 2: Price Competition and Market Dynamics - The law critically examines low-price competition, prohibiting platforms from forcing merchants to sell below cost, which is seen as a corrective measure against harmful competition practices that can lead to industry profit depletion and quality decline [3] - The legislative process reflects a deep understanding of the competitive dynamics in the digital economy, tailoring solutions to new characteristics and problems rather than applying traditional regulatory frameworks [3]

Political Landscape - The emergency presidential election in South Korea is scheduled for June 3, 2025, following political uncertainty due to the declaration of martial law and the impeachment of President Yoon Suk-yeol[6]. - Recent polls indicate that opposition candidates are leading, reflecting a favorable trend for the opposition party amid high public support for changing the current government[7][8]. Economic Policy Outlook - Key economic policy platforms focus on improving corporate governance and addressing the "Korea discount," with retail investors representing nearly 30% of the population[19]. - Major candidates propose four main categories of capital market policies: corporate governance reform, tax incentives, enhanced accessibility for capital markets, and establishing a fair market order[20]. Market Projections - The KOSPI 12-month target has been raised to 2900, indicating a 9% upside potential, driven by the elimination of political risks and advancements in capital market reforms[3][64]. - The potential reclassification of South Korea's MSCI status could attract approximately $20-30 billion in foreign investment, improving market accessibility[48][51]. Corporate Governance Reforms - Both leading candidates emphasize the importance of corporate governance reforms, which could play a crucial role in narrowing the Korea discount[22][23]. - Despite previous efforts, the valuation of the Korean stock market remains significantly discounted compared to regional and global peers, with a price-to-book ratio discount of 48% compared to developed markets[28]. Tax Incentives - Proposed reforms include changes to dividend and inheritance tax policies to encourage higher dividend payouts, which previously saw significant increases when similar policies were implemented in 2014[37][40]. - The inheritance tax reform aims to address undervaluation issues of listed company stocks, particularly for those with a price-to-book ratio below 0.8[38]. Market Order and Transparency - Candidates commit to strengthening penalties for illegal trading practices, such as insider trading, to enhance protection for minority shareholders and improve market transparency[52][53]. - The overall number of unfair trading cases has decreased, but there has been a rise in cases related to interest disclosures in 2024[53]. Sector-Specific Policies - Both candidates support strategic industries such as AI, renewable energy, and defense, with commitments to establish investment funds and incentives for domestic production[59][60]. - The focus on enhancing the competitiveness of the shipbuilding industry and advancing defense technology is also highlighted in their platforms[60].