February 19, 2004

South Africa, Korea Plan Moves to Encourage Broad-Based Ownership

NCEO founder and senior staff member

Both the South African and Korean governments have indicated they plan to introduce legislation to encourage broad-based employee ownership. The Korean plan would provide for tax benefits for discounted share purchase plans; South Africa would end the current taxation of shares or options received by employees when they are granted (as opposed to when gains are realized). The tax incentive would be capped so as to encourage broad ownership.