Call me Kim: anonymous accounts bolster South Korean stocks

Article Abstract:

South Korea's prohibition of anonymous financial accounts, which Pres Kim Young Sam ordered to take effect on Oct 13, 1993, did not immediately cause a bull run on the Korea Stock Exchange as was expected. Actually, a surprisingly large 40% of financial-account holders made no changes as the amnesty period ended on Oct 12. However, these accounts will probably eventually be invested in the stockmarket where the capital gains tax will not apply until 1998. The government may have to raise the 10% limit on foreign investment to improve the market's liquidity.

Bank accounts, Korea Stock Exchange

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What's in a name? Korean financial reforms spook local investors

Article Abstract:

The newly installed South Korean government's proposed financial reforms are expected to have negative repurcussions on localinvestments. The government intends to get rid of the false-name financial system with which investors hide to avoid tax on their financial holdings. However, analysts warn that an immediate banning of false-name accounts could lead to the abrupt withdrawal of 4% of South Korea's total money supply from circulation.

Financial markets, Korea, South

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