Park Chan-dae "Financial Investment Tax, Appropriate to Implement After Supplementation... Rational Adjustment of Inheritance Tax Needed" (Comprehensive)

"Consider Raising the Deduction Limit for Financial Investment Tax"
"Adjustment Needed for Inheritance Tax on Single-Generation Single-Home"

Park Chan-dae, Acting Leader of the Democratic Party of Korea and Floor Leader, stated on the 16th regarding the controversy over the financial investment income tax, "It is right to implement it as scheduled, but it would be appropriate to implement it after supplementing some issues raised by taxpayers."

At a Kwanhun Club invitation debate held at the Korea Press Center in Jung-gu, Seoul, Park said, "There are various opinions within the party, so discussion is necessary."

The financial investment income tax is a system that taxes 20% (25% if income exceeds 300 million won) on investors who earn more than 50 million won from financial products such as stocks, bonds, funds, and derivatives. Within the party, opinions are divided between "it should be implemented as scheduled from January next year" and "it should be supplemented or postponed."

When asked specifically "which parts need to be supplemented," Park said, "There are concerns that the system is not prepared for the plan to withhold taxes semi-annually. It could be changed to annual reporting and payment." He added that the part where dependent family deductions are not allowed for financial investment income could also be reviewed for supplementation.

He said, "As former leader Lee Jae-myung suggested, the deduction limit could be raised from 50 million won," but also noted, "There are many advantages to the financial investment income tax. It is necessary to communicate sufficiently with the public."

The Park Chan-dae Invitational Kwanhun Debate hosted by the Democratic Party's floor leader was held on the 16th at the Seoul Press Center. Floor Leader Park is answering questions from the panel. Photo by Heo Young-han younghan@

Regarding the government's plan to reduce the highest inheritance tax rate from 50% to 40%, he opposed it, saying, "This measure adjusts the tax rate only for the very wealthy and practically has no relation to the middle class."

Park explained, "If the decedent owned one house per generation, it seems that the inheritance tax payment obligation has increased significantly compared to the past when one house is inherited," and added, "There needs to be adjustment on such points."

On the plan to promote easing the comprehensive real estate tax as a party policy, he said, "Right after assuming the floor leader position, I mentioned in an interview that it would be good to consider easing because tax resistance is strong for one house per generation," but avoided a definitive answer by saying, "However, how to set the party policy is something our lawmakers need to discuss thoroughly."

Park said, "The comprehensive real estate tax collected from 'one house per generation' amounts to only about 90 billion won annually," and added, "If only 90 billion won is collected, one might question whether it is meaningful as a tax base."

The Park Chan-dae Invitational Kwanhoon Debate hosted by the Democratic Party's floor leader was held on the 16th at the Seoul Press Center. Floor Leader Park is greeting the attending members. Photo by Heo Young-han younghan@

"Acceptable to adopt the third-party recommendation proposal for the Chae Sang-byeong special prosecutor law"

Regarding the Chae Sang-byeong special prosecutor law, Park said that the third-party recommendation proposal mentioned by Representative Han Dong-hoon can also be accepted.

Park said, "I hope Representative Han, as the leader of the ruling party, keeps his promise to the public and promptly submits the special prosecutor proposal," and added, "The Democratic Party is ready to engage in open discussion and consultation."

He also diagnosed that South Korea is currently in a comprehensive crisis and argued that President Yoon Seok-youl should recognize the opposition as a partner in state affairs and actively engage in dialogue to overcome the crisis.

He said, "There are national tasks such as responding to the economic crisis and livelihood crisis, constitutional amendment, climate change, population extinction, and pension reform," and urged, "I proposed a 'permanent consultative body among the ruling party, opposition, and government' including the president to overcome the national crisis, and I hope the president responds quickly."

Park raised his voice, saying, "The People Power Party claims that the Democratic Party is conducting parliamentary dictatorship, but the dictatorship is being done by the president. The president has exercised veto power 21 times already," and added, "Passing only bills that suit the president's taste is not democracy."