Ishiba's economic policy that caused the stock market to plunge...Should We Quell Market Disturbance?

[Anchor]
Market vigilance is growing as Shigeru Ishiba, the new president of Japan's Liberal Democratic Party, put forward financial income tax and defense tax increases.

Since taking office as prime minister, the main task has emerged as how to quell market instability in state administration.

Correspondent Kim Se-ho's report from Tokyo.

[Reporter]
On the first trading day since Shigeru Ishiba took office, the Nikkei index started sharply lower.

Continuing the decline, the 38,000-mark collapsed to close 4.8% at 37,919.

It's the biggest drop in the next trading day since the 1990 Liberal Democratic Party presidential election.Japanese media, including

Nihon Keizai, analyzed that the spread of anxiety over the Ishiba government's economic policies.

Governor Ishiba weighs distribution in economic policy, especially in taxation of financial income, corporate and defense tax increases, and income tax reform.

However, concerns about the tax increase policy seem to have been reflected in the market.

[Tokyo citizen: This is not the time to raise taxes. People's lives can be difficult again.]

A spokesman for the Japanese government said it would work closely with the central bank on the stock market's downward move and make every effort to manage the economy and finances.

[Yoshimasa Hayashi / Japanese Chief Cabinet Secretary: We will keep an eye on economic and financial market trends at home and abroad with tension.]

In the midst of this, Ishiba announced that he would dissolve the House of Representatives after taking office and hold a general election on the 27th of this month.

As he said he would ask for the trust of the people, a preliminary evaluation and judgment on the policy are expected to take place at this time.

Ishiba will be named prime minister today after an extraordinary parliamentary session.

How much the new government will quell market instability is expected to affect the future power of state administration.

I'm Kim Se-ho from YTN in Tokyo.