President Lee: "I Will Not Insist on a 1 Billion Won Threshold for Major Shareholder Capital Gains Tax"

President Lee Holds 100-Day Inauguration Press Conference on the 11th
Stock Market Slump Follows Announcement of Tax Law Revision
Lee: "No Need to Insist If It Becomes an Obstacle"

President Lee Jae-myung is speaking at the 100-day inauguration press conference titled "100 Days for Recovery, Growth for the Future" held at the Blue House State Guesthouse on the 11th. Photo by Yonhap News Agency

President Lee Jae-myung stated at his 100-day inauguration press conference on the 11th that he does not believe the threshold for the major shareholder capital gains tax "must be lowered to 1 billion won." This is interpreted as his intention to maintain the current threshold of 5 billion won, in response to concerns that the proposed tax law revision is negatively impacting the stock market. He also mentioned that, regarding other issues such as amendments to the Commercial Act, he would design policies in a way that supports the revitalization of the capital market.

The 'Major Shareholder Capital Gains Tax' That Caused Ruling Party-Government Conflict... 5 Billion Won Threshold to Be Maintained

At the press conference titled "100 Days for Recovery, Growth for the Future" held at the Blue House State Guesthouse, President Lee said, "Revitalizing the stock market is the core of the new administration," and added, "If the major shareholder capital gains tax issue becomes an obstacle, I don't see the need to insist on it." He further explained, "After gathering opinions, it seems that the general consensus is to leave it as it is."

The Ministry of Economy and Finance announced a tax law revision on July 31, which included lowering the stock holding threshold for major shareholders subject to the capital gains tax from 5 billion won to 1 billion won per stock. However, as the stock market turned downward, public opinion within the ruling party began to call for the withdrawal of the tax law revision. The presidential office had previously stated it would "watch the discussions between the ruling party and the government," but President Lee has now directly indicated the direction to maintain the 5 billion won threshold.

President Lee reiterated his commitment to policies that would revitalize the capital market. He criticized the current undervaluation of domestic listed companies, saying, "The situation is absurd," and added, "Shareholders cannot trust the management status of companies." President Lee believes that normalizing management must be prioritized to resolve this issue.

Regarding the ruling party's proposed amendment to the Commercial Act, President Lee argued, "It is not about tightening control over companies, but about putting pressure on unjust and unscrupulous corporate executives and certain controlling shareholders," adding, "Companies are owned by minority shareholders, and they welcome this." He also addressed concerns raised by the business community, stating, "These concerns are being distorted as if they represent public opinion," and emphasized again, "We must amend the Commercial Act to normalize management practices so that companies are properly evaluated."

Lee: "The Stock Market Has a Long Way to Go, Investments Are at Unprecedented Levels"

President Lee also indicated that if tax revenue policies such as the separate taxation of dividend income conflict with capital market policies, he would design policies that prioritize stock market revitalization. He said, "It is desirable to move in a direction that helps revitalize the stock market," and added, "As long as there is no significant shortfall in tax revenue, it is right to maximize dividends."

President Lee further stated, "The normalization of the stock market is still a long way off," and added, "This time, we are implementing expansionary fiscal policies, with budget increases and fiscal investments at levels rarely seen before." He expressed confidence, saying, "The government has strong will, clear direction, and ample resources. If we contribute to economic growth and increase corporate net profits and earnings, the stock market will take a step up."

On this day, President Lee also shared his reflections on his first 100 days in office. He said, "If I were to summarize the past 100 days, I would call it 'a time for recovery and normalization,'" and cited the supplementary budget, consumer coupons for economic recovery, surpassing the KOSPI 3000 mark, and normalization of diplomatic relations as achievements. He promised that "the remaining four years and nine months will be a time for advancement and growth," and pledged to pursue genuine growth and politics of integration.

Meanwhile, this was President Lee's second press conference, following his "30-day inauguration press conference" on July 3. As in the previous conference, the distance between the president and attendees was kept at 1.5 meters. The Q&A session proceeded in the order of people's livelihood and economy, politics, diplomacy and security, and social and cultural issues. After common questions on major issues, additional questioners were selected by drawing business cards.