(Bloomberg) -- South Korea said it will ease the tax burden for companies that are taking steps to enhance returns for their shareholders, following up on its pledge to improve valuations and boost the local stock market.

The government will reduce corporate taxes for a portion of increased shareholder returns, Finance Minister Choi Sang-mok said Tuesday in a meeting with investors and bankers, according to an emailed statement from his office.

Companies that prioritize shareholder returns will be given “bold incentives” and tax benefits under the “Corporate Value-up Program,” the Financial Services Commission had said late in February.

--With assistance from Youkyung Lee and Shinhye Kang.

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