Major Shareholder Sells Stocks for an Average Profit of 1.3 Billion KRW... Capital Gains Tax Is 300 Million KRW

Average Capital Gains per Person: 1.319 Billion KRW
Average Capital Gains Tax: 314 Million KRW

It has been revealed that major shareholders subject to capital gains tax on stocks earned an average capital gain of over 1.3 billion KRW by selling listed stocks.

According to data received by Yang Kyung-sook, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, from the National Tax Service on the 11th, 5,504 people reported stock capital gains tax in 2022, and they earned an average capital gain of 1.31 billion KRW.

They acquired stocks worth a total of 2.5745 trillion KRW and sold them for 9.9434 trillion KRW in 2022, resulting in a capital gain of 7.2585 trillion KRW.

The total capital gains amount decreased by 1.9104 trillion KRW (20.8%) compared to the previous year (9.1689 trillion KRW). The number of filers also decreased by 1,541 people (21.9%), causing the average capital gain per person to increase compared to the previous year (1.31 billion KRW).

The capital gains tax they paid amounted to 1.7261 trillion KRW, with an average tax payment of 314 million KRW per person.

The average capital gain per transaction was 221.2 billion KRW. The number of asset cases in the top 0.1% based on capital gains was 14, with a capital gain amount of 3.0971 trillion KRW, accounting for 42.7% of the total capital gains. This proportion increased compared to 2020 (24.7%).

Capital gains tax on stocks is imposed on major shareholders who hold more than 1 billion KRW per stock or have a certain shareholding ratio as of the end of the previous fiscal year. When selling listed stocks, a capital gains tax of 20-25% is paid on the capital gains. Small shareholders who trade listed stocks over-the-counter must also report capital gains tax.

The government relaxed the major shareholder criteria from 1 billion KRW to 5 billion KRW per stock through an amendment to the enforcement decree at the end of last year.

Assembly member Yang Kyung-sook said, "At a time when the national budget deficit (management fiscal balance) reached 75 trillion KRW in the first quarter of this year, the Yoon Seok-yeol administration is only focused on tax cuts for the wealthy that deplete the finances," adding, "As the government narrows the scope of major shareholders, tax cut benefits will become even more concentrated among a small number of high-value shareholders in the future."