Korean Stocks Bounce Back as Opposition to Tax Hike Grows

South Korean stocks rebounded Monday on growing optimism that a controversial tax proposal blamed for last week’s selloff may be revised.

The benchmark Kospi closed 0.9% higher, rebounding from Friday’s slump, as a petition to lower the threshold for capital gain taxes announced late Thursday received more than 125,000 signatures. In a sign that the pushback is gaining traction, the ruling party floated a possible revision, while President Lee Jae Myung’s office said there’s a need to study the underlying causes of the market decline.