Promoting tax adjustments while fostering growth: Requisites for a durable increase in revenue
In a significant turn of events, the U.S. Congress passed the One Big Beautiful Bill Act (OBBB) in July 2025, a legislation that has far-reaching implications for U.S. federal tax law, spending, and economic policy. The Act, however, does not seem to have had a direct impact on the KOSPI stock index in South Korea as of August 1, according to available information.
The OBBB Act includes provisions such as tax cuts, federal spending increases, and changes in tax deductions, foreign tax credits, and business investment incentives. These changes could potentially influence U.S. economic growth and multinational corporate earnings, and in turn, indirectly affect global financial markets like the KOSPI.
However, a thorough search of available sources does not provide any direct market reactions or changes in South Korean financial markets following the bill’s enactment. To fully understand the impact on the KOSPI, one would need to consult market performance data, analyst commentaries, economic reports linking U.S. fiscal policy changes to South Korean markets, and statements from South Korean financial institutions or market experts.
Meanwhile, on August 1, the KOSPI index experienced a significant drop of 3.88 percent, with the index closing at 3,119.41 points. This decrease was accompanied by a weakening of the won against the dollar, which broke the 1,400 mark. The cause of this drop is not directly linked to the OBBB Act, but it may be related to the government's rollback of tax cuts.
Elsewhere, the passing of the OBBB Act has caused some controversy within President Trump's party due to concerns about increasing the national debt and affecting the social safety net. Notably, tech entrepreneur Elon Musk has publicly criticized the Act, which may have contributed to a fracture in his relationship with the president.
As the KOSPI index has not yet reached the 'Kospi 5000' era, the implications of the OBBB Act on South Korea's economy and financial markets continue to be a subject of interest and analysis. Professor Cho Won-Kyeong, head of the Global Industry-University Cooperation Center at UNIST, is among those closely monitoring the situation.
In conclusion, while the One Big Beautiful Bill Act is a substantial U.S. fiscal law with potential long-term global economic effects, its direct impact on the KOSPI index in South Korea remains unclear. Further research and analysis are needed to fully understand the potential linkages between U.S. fiscal policy changes and South Korean markets.
- The One Big Beautiful Bill Act, passed in July 2025, includes changes in tax deductions, foreign tax credits, and business investment incentives, which could indirectly affect global financial markets like the KOSPI.
- The KOSPI index, on August 1, experienced a significant drop of 3.88 percent, possibly not directly linked to the OBBB Act, but potentially related to the government's rollback of tax cuts.
- The passing of the OBBB Act has caused controversy within President Trump's party due to concerns about increasing the national debt and affecting the social safety net.
- As the KOSPI has not yet reached the 'Kospi 5000' era, the OBBB Act's implications on South Korea's economy and financial markets are a subject of interest and analysis for experts like Professor Cho Won-Kyeong.
- Elsewhere, tech entrepreneur Elon Musk has publicly criticized the OBBB Act, which may have contributed to a fracture in his relationship with the president.
