Despite Stock Market Crash, Ruling and Opposition Parties Differ... Ruling Party Calls for "Abolition of Financial Investment Tax," Opposition Urges "Yoon to Take Direct Action"

Handonghun "Forcing Financial Investment Tax Could Bring a Perfect Storm"
Jinseongjun "The President Doesn't Seem to Be at All in an Emergency"

In response to the sharp decline in the domestic stock market due to concerns over a U.S. economic recession, the political sphere has called for measures to be taken. While the ruling party advocated for negotiations to abolish the financial investment income tax during this opportunity, the opposition party urged President Yoon Seok-yeol, who is currently on vacation, to directly respond to the crisis situation.

On the 6th, Han Dong-hoon, leader of the People Power Party, mentioned the stock market crash the previous day during a party-government council meeting and said, "We need to establish a bipartisan stance on the abolition of the financial investment income tax." He added, "As global stock markets are heading toward various unstable situations, if we push forward with the financial investment income tax that could create a momentum for a significant stock price drop only in our market, we will be creating a perfect storm in difficult circumstances and entering it."

[Image source=Yonhap News]

Choo Kyung-ho, floor leader of the People Power Party, said at a floor countermeasure meeting, "We need to fundamentally review the problems of our stock market in light of the stock price crash," adding, "It is necessary to clearly analyze what structural problems are deteriorating the driving force of our stock market's rise and what the fundamental causes are for our market's vulnerability to external shocks, and promptly devise countermeasures." He continued, "The People Power Party will not spare support for the government's market stabilization measures and legislative efforts for fundamental institutional improvements."

The Democratic Party also called for the government to take active measures in response to not only the U.S. economic recession but also the geopolitical crisis originating from the Middle East. Jin Sung-jun, chairman of the Democratic Party's Policy Committee, introduced that "330 trillion won of market capitalization evaporated over two trading days since last Friday," and criticized, "The president and the presidential office do not seem to be in any emergency at all." Jin urged, "The president should personally lead emergency responses and take contingency measures to ensure public safety."

Meanwhile, the Democratic Party decided to change the highest committee meeting scheduled for the 7th to an emergency economic inspection meeting to assess the economic situation.