President Lee Jae Myung ordered a full review of the government’s proposed overhaul of individual savings accounts (ISAs) and measures targeting the deliberate suppression of share prices. The order came on Friday, just four days after the government unveiled its tax reform plan on Aug. 3.

What went wrong?

Cuts to existing ISA benefits

ISAs offer tax breaks on interest and dividend income, making them a widely used vehicle for retail investors seeking to build wealth. Up to 2 million won ($1,416) of investment income is tax-exempt, while income above that threshold is taxed separately at a preferential rate of 9.9 percent.

As part of an effort to channel more money into domestic markets, the government proposed a new “productive finance…