Growing 'Geumtu Tax Debate'... Will the Ruling and Opposition Parties Hold a Forum?

Handonghun Proposes Debate to Democratic Party
Democratic Party: "Handonghun, Come Out Yourself"

Attention is focused on whether a ruling and opposition party debate on the financial investment income tax (금투세, Geumtu Tax) will be held in the National Assembly, as the opposition party accepted the ruling party's proposal for a discussion on the matter. The Geumtu Tax is a tax imposed at a rate of about 20-25% on the amount exceeding 50 million KRW of annual investment income from financial investment products such as stocks. The opposition party holds the position that taxes should be levied where there is income. However, Lee Jae-myung, the Democratic Party leader candidate who supports postponing the Geumtu Tax, has emerged as a variable.

On the 15th, dark clouds heavily covered the National Assembly building. With the 22nd general election concluded on the 10th, attention is focused on how the 21st National Assembly, with just over a month left in its term, will resolve pressing issues such as pension reform and the abolition of the financial investment tax. Photo by Hyunmin Kim kimhyun81@

On the 6th, Han Dong-hoon, leader of the People Power Party, proposed a debate on the Geumtu Tax to the Democratic Party. The day before, Han Ji-a, chief spokesperson of the People Power Party, said, "Leader Han proposed holding a Geumtu Tax debate together with the People Power Party, which the Democratic Party has not been able to do," adding, "Now is the right time for the ruling and opposition parties to openly discuss the Geumtu Tax policy." After the Democratic Party tentatively postponed the Geumtu Tax-related debate scheduled for the 7th, the People Power Party pressured them to negotiate on the topic of abolishing the tax. In response, the Democratic Party accepted Leader Han's proposal. Im Kwang-hyun, a Democratic Party lawmaker in charge of the debate, stated in a press release the day before, "Let's hold the Geumtu Tax debate. It was difficult to secure a debater who strongly advocates abolition, so this is good," and added, "Leader Han can come out himself."

The Geumtu Tax controversy was triggered recently in conjunction with the plunge in the domestic stock market. The ruling party argues that if the Geumtu Tax is implemented as scheduled next year, it will cause turmoil in the domestic stock market. On the 5th, Leader Han said on his Facebook, "Our stock market has been greatly shaken by overseas issues. If the Geumtu Tax is pushed through in this situation, it will create a 'perfect storm' by adding a bigger source of anxiety to the global uncertainties in the second half of the year," and stated, "Abolishing the Geumtu Tax is a matter of livelihood." The term 'perfect storm' refers to a situation where small economic problems overlap and lead to a major economic crisis.

The opposition party believes that the Geumtu Tax should not be linked to the stock market turmoil. Jin Sung-jun, chairman of the Democratic Party's Policy Committee, has consistently reiterated the necessity of the Geumtu Tax. When President Yoon Suk-yeol stated at his 2nd anniversary press conference in May that the Geumtu Tax should be abolished, Chairman Jin said, "The claim that the introduction of the Geumtu Tax will cause our stock market to 'collapse' is completely unfounded exaggeration." The Democratic Party also immediately rebutted Leader Han, who raised the possibility of a perfect storm. Yoon Jong-gun, Democratic Party floor spokesperson, said in a written briefing the day before, "Are you saying the stock market plunge is due to a system that has not even been implemented yet?" and added, "Instead of apologizing for the government's failure in economic management, which is the biggest cause of the stock price decline, they are trying to shift responsibility to the opposition party by using the Geumtu Tax."

However, candidate Lee's continued 'rightward shift' is a variable. Lee, who is virtually confirmed for re-election as party leader, maintains a stance of reconsidering the Geumtu Tax. In the 4th TV debate held by SBS the day before, Lee said, "The stock market lives on dreams, and many people resist the issue of taxing up to 50 million KRW," adding, "There is no need to unnecessarily provoke tax resistance." In fact, tax resistance seems to be materializing. As of that day, more than 1,000 comments were posted on Chairman Jin's blog. It appears that individual investors are opposing Chairman Jin, who supports maintaining the Geumtu Tax. They expressed reactions such as "Don't send stock investors to the U.S." and "Does the government compensate even partially when money is lost in stocks?"

This content was produced with the assistance of AI translation services.