Market Overview - The South Korean stock market experienced a significant drop on August 1, with the Seoul Composite Index falling nearly 4%, marking the largest decline since early April [2] - This decline was attributed to the government's proposal to increase taxes on corporations and investors, leading to cautious sentiment in one of the hottest stock markets globally [2] Tax Policy Changes - The South Korean government plans to lower the capital gains tax threshold from 5 billion KRW (approximately 71,425 USD) to 1 billion KRW, while also increasing transaction taxes [2] - The corporate income tax rate is set to rise from 24% to 25%, reversing previous tax reduction policies [2] - Proposed changes include raising the stock transaction tax from 0.15% to 0.2% and implementing a 20% tax rate on dividend income between 20 million and 300 million KRW, with a 35% rate on amounts exceeding 300 million KRW [4] Investor Sentiment - The proposed tax adjustments have sparked strong backlash among retail investors, with a nationwide petition for immediate withdrawal gaining traction and support [2][3] - Despite the recent market downturn, the Seoul Composite Index has risen over 30% year-to-date, benefiting from optimistic sentiment surrounding corporate governance reforms initiated by the new government [2] Corporate Performance - Samsung Electronics, South Korea's largest company by market capitalization, has seen its stock decline for two consecutive days due to disappointing earnings that fell short of analyst expectations [3] - The market had previously anticipated progress in Samsung's memory chip and foundry businesses, which had driven a rebound in its stock over the past two months [3] Economic Context - The new administration under President Lee Jae-myung aims to bolster weak government finances to increase subsidies and stimulate consumption amid slowing economic growth [2] - The proposed tax increases may undermine the government's support among the active retail investor community and raise concerns among foreign institutional investors who had recently shown renewed interest in the market [3]

Market Overview - The South Korean stock market experienced a significant drop on August 1, with the Seoul Composite Index falling nearly 4%, marking the largest decline since early April [3] - The index closed at 3129.72, down 115.72 points or 3.57% from the previous day [4] Tax Policy Changes - The South Korean government proposed increasing taxes on corporations and investors, which has raised concerns among market participants [3] - Capital gains tax thresholds for stock holdings will decrease from 5 billion KRW (approximately 71,425 USD) to 1 billion KRW, and the corporate tax rate will rise from 24% to 25% [4][6] - The proposed stock transaction tax will increase from 0.15% to 0.2%, and dividend income will be taxed at 20% for amounts between 20 million and 300 million KRW, and at 35% for amounts exceeding 300 million KRW [8] Investor Sentiment - The proposed tax changes have sparked strong backlash among retail investors, with a nationwide petition for immediate withdrawal gaining traction [5][6] - Despite the recent downturn, the Seoul Composite Index has risen over 30% year-to-date, benefiting from optimistic sentiment surrounding corporate governance reforms [5] Economic Context - The government aims to boost weak fiscal revenues to increase subsidies and stimulate consumption amid slowing economic growth [6] - The proposed tax increases may undermine the support of the active retail investor community, which has been crucial for the government's market initiatives [6] Company Performance - Samsung Electronics, the largest company by market capitalization in South Korea, has seen its stock decline for two consecutive days due to disappointing earnings results [6] - The market had previously anticipated progress in Samsung's memory chip and foundry businesses, which had driven a rebound in its stock over the past two months [6]

Market Overview - On August 1, the South Korean stock market experienced a sudden drop, with the Seoul Composite Index falling nearly 4%, marking the largest decline since early April [4] - This decline led the Asian markets, raising concerns about the government's plan to increase taxes on businesses and investors [4] Tax Policy Changes - The South Korean Ministry of Finance proposed to lower the capital gains tax threshold from 5 billion KRW (approximately 714,250 USD) to 1 billion KRW, while also increasing transaction taxes [6] - The corporate income tax rate is set to rise from 24% to 25%, reversing the previous government's tax reduction policies [6] - The proposed changes have sparked significant backlash among retail investors, with a nationwide petition for immediate withdrawal gaining traction and public support [6][7] Economic Context - The new administration under President Lee Jae-myung aims to boost government revenue to enhance subsidies and stimulate consumption amid slowing economic growth [6] - The decline in corporate tax revenue highlights the increasing fiscal pressure on South Korea, the fourth-largest economy in Asia [6] Market Sentiment - Despite the recent downturn, the Seoul Composite Index has risen over 30% this year, benefiting from optimistic sentiments surrounding corporate governance reforms initiated by the new government [6] - However, the proposed tax adjustments are causing concern among investors, particularly as they may increase the number of taxable investors [6][9] Investor Reactions - Samsung Electronics, South Korea's largest market-cap stock, has seen consecutive declines due to disappointing earnings reports, which have affected market expectations [7] - If market momentum continues to wane, achieving President Lee's ambitious goal of pushing the stock market above 5,000 points, over 50% higher than current levels, will become increasingly challenging [9] Tax Rate Details - The proposed stock transaction tax will increase from 0.15% to 0.2% [9] - Dividend income between 20 million and 300 million KRW will be taxed at 20%, while amounts exceeding 300 million KRW will be taxed at 35% [9]

Market Overview - On August 1, the South Korean stock market experienced a sudden drop, with the Seoul Composite Index falling nearly 4%, marking the largest decline since early April [2] - The decline was attributed to government plans to increase taxes on businesses and investors, leading to cautious sentiment in one of the hottest stock markets globally [2] Tax Policy Changes - The South Korean Ministry of Finance proposed to lower the capital gains tax threshold from 5 billion KRW (approximately 714,250 USD) to 1 billion KRW, while also increasing transaction taxes [4] - The corporate income tax rate is set to rise from 24% to 25%, reversing previous tax reduction policies [4] Investor Sentiment - The proposed tax changes have sparked strong backlash among retail investors, with a nationwide petition for immediate withdrawal gaining traction and public support [5] - Despite the recent downturn, the Seoul Composite Index has risen over 30% this year, benefiting from optimistic sentiment surrounding corporate governance reforms initiated by the new government [5] Economic Context - President Lee Jae-myung, who took office in June, aims to boost government revenue to increase subsidies and stimulate consumption amid slowing economic growth [6] - The proposed tax increases may weaken support from the active retail investor community and raise concerns among foreign institutional investors who had recently regained confidence in the market [6] Market Performance - Samsung Electronics, South Korea's largest market-cap stock, has seen consecutive declines due to disappointing earnings reports that did not meet analyst expectations [6] - The market's focus is shifting towards government policy reforms, with recent tax proposals being perceived as negative news that could undermine investor confidence [8] Future Outlook - If market momentum is lost, achieving President Lee's ambitious goal of pushing the stock market above 5,000 points, which is over 50% higher than current levels, will become more challenging [8] - The proposed increase in stock transaction tax from 0.15% to 0.2% and the new tax rates on dividend income are unexpected negative developments for the market [8]

Group 1 - The South Korean stock market experienced a sudden drop, with the Seoul Composite Index falling nearly 4%, marking the largest decline since early April, primarily due to government plans to increase taxes on corporations and investors [4][5] - The proposed capital gains tax threshold will decrease from 5 billion KRW (approximately 71,425 USD) to 1 billion KRW, alongside an increase in transaction tax and a rise in the corporate income tax rate from 24% to 25%, reversing previous tax cuts [4][6] - The proposed tax changes have sparked strong backlash among retail investors, with a nationwide petition for immediate withdrawal gaining significant public support [5][6] Group 2 - Despite the recent downturn, the Seoul Composite Index has risen over 30% this year, benefiting from optimistic sentiment surrounding corporate governance reforms initiated by the new government [5] - The government, led by President Lee Jae-myung, aims to boost weak fiscal revenues to increase subsidies and stimulate consumption amid slowing economic growth [6][9] - The proposed tax adjustments are causing concern among investors, particularly as disappointing earnings reports from some companies shift market focus towards government policy reforms [9] Group 3 - Samsung Electronics, South Korea's largest market-cap stock, has seen consecutive declines due to its earnings report falling short of analyst expectations, despite previous market optimism regarding its performance in memory chips and foundry services [6][9] - The government's tax proposals, including an increase in stock transaction tax from 0.15% to 0.2% and a new tax structure for dividend income, are viewed as unexpected negative news by the market [9]

Core Viewpoint - Intel's CEO emphasized that the foundry business remains a crucial part of the company's strategy [1] Group 1 - The foundry business is positioned as a key component of Intel's overall operations [1] - Intel aims to leverage its foundry services to enhance competitiveness in the semiconductor market [1] - The company is focusing on expanding its manufacturing capabilities to meet increasing demand [1]