Urging Decision on the Democratic Party's Proposal to Implement Financial Investment Tax Relief
On the 7th, Kwon Seong-dong, a member of the People Power Party, urged the Democratic Party of Korea to make a decision through SNS, stating, "If the implementation of the financial investment income tax is not blocked in this year's regular National Assembly, the Korean stock market will plummet immediately next year."
Kwon Seong-dong, floor leader of the People Power Party, is attending the party floor strategy meeting held at the National Assembly on the 13th and delivering opening remarks. Photo by Yoon Dong-joo doso7@
The financial investment income tax is a system that imposes a tax of 22-27.5% on capital gains exceeding 50 million won annually from investments in stocks, bonds, funds, etc., and is scheduled to be implemented next year. The government and the People Power Party argue for the complete abolition of the tax due to concerns about capital outflow, while the Democratic Party supports a softened implementation. However, the Democratic Party has not yet reached a concrete conclusion on the timing of the tax's implementation.
Rep. Kwon pointed out, "If the Democratic Party ultimately refuses the public's demand for the abolition of the financial investment income tax, another name for this tax will inevitably be the ‘Lee Jae-myung Tax’," adding, "The Democratic Party is encouraging domestic capital outflow by including overseas stock investment tax exemptions under the pretext of supplementary legislation."
He also emphasized, "The Democratic Party claims that the tax targets only 150,000 people, which is 1% of the total 14 million stock investors, but if the minimum 150 trillion won in funds they manage flows out massively, the damage to retail investors is obvious."
Referring to the recent plunge in the domestic stock market due to concerns about a U.S. economic recession, Rep. Kwon expressed concern, saying, "In such circumstances, the introduction of the financial investment income tax is prompting self-deprecating remarks like ‘escaping the domestic stock market is a matter of intelligence.’"
In particular, he urged the Democratic Party again, saying, "During the five years of the Moon Jae-in administration, the public lost opportunities for employment and home ownership due to flawed economic policies. If there was even a little sincerity in advocating ‘Meoksa-nism,’ please make a decisive decision."
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