Kim Min-seok "Delay Financial Investment Tax Introduction by 3 Years to Boost Stock Market"... Calls for Postponement

Ahead of the Democratic Party's Internal Debate
Kim Min-seok, Supreme Council Member, Advocates 'Need for Postponement'
"Let's Stimulate the Stock Market, Postpone, and Tax High Returns"

Kim Min-seok, a Supreme Council Member of the Democratic Party of Korea (4-term, Yeongdeungpo-gu Eul, Seoul), supported the 'postponement faction' amid the party's debate over the financial investment income tax (금투세, Geumtu Tax). He argued that the introduction of the Geumtu Tax, scheduled for 2025, should be delayed by about three years, and during that time, the stock market should be stimulated through amendments to the Commercial Act and other measures. He also stated that at the expiration of the tax postponement, taxes should be imposed on high earners based on indicators such as the KOSPI.

On the afternoon of the 19th, Council Member Kim posted on Facebook to present these views. The Democratic Party is divided into proponents of immediate implementation and those favoring postponement regarding the Geumtu Tax, and he sided with the postponement faction. He said, "The Democratic Party should develop policies to expand the middle class in an advanced country model, based on its tradition of prioritizing the middle class and ordinary citizens," adding, "We need to ensure asset growth through stock market revitalization and increase returns for small investors to strengthen the middle class." He also mentioned, "The institutional advancement of the Korean stock market is still insufficient, and the KOSPI and KOSDAQ indices rank lowest among the Group of Twenty (G20) advanced countries."

Council Member Kim stated, "Although the actual number of taxpayers subject to the Geumtu Tax may not be large, there is a tendency to prioritize tax justice before the expectations of small investors are realized," adding, "Even the fundamental principles of tax justice can provoke psychological resistance." He continued, "Amendments to the Commercial Act for small investors and the prompt passage of the Korean-style Individual Savings Account (ISA) must be achieved," emphasizing, "The implementation of the Geumtu Tax should be postponed for about three years to allow time to verify stock market stimulation." Furthermore, he said, "At the expiration of the postponement, the implementation of the Geumtu Tax should be decided based on whether appropriate targets, such as a KOSPI of 4000, have been met."

He also stated, "The Geumtu Tax is primarily a tax justice policy," and added, "The forthcoming Geumtu Tax should be clearly named and characterized as the 'High-Income Stock Investment Tax Law.'"

Kim Min-seok, Supreme Council Member of the Democratic Party of Korea, is giving an interview to Asia Economy at the National Assembly on the 3rd. Photo by Kim Hyun-min kimhyun81@

He pointed out that achieving 'implementation after supplementation' immediately is difficult, and that 'complete abolition' does not align with tax justice. He argued, "The 'one-shot' proposal to simultaneously implement amendments to the Commercial Act, the introduction of the Korean-style ISA, and the Geumtu Tax has good intentions but is unrealistic," adding, "The psychological effects of the supplementary policies would not be fully realized, and there would be risks of stock price declines after implementation." Meanwhile, he sharply criticized, "The shamelessness of Chu Kyung-ho, who advocates abolition, and the thoughtlessness of Han Dong-hoon, who demands abolition without alternatives, are not intellectual attitudes."

Council Member Kim said, "I am expressing my personal position ahead of the public debate on the Geumtu Tax," and added, "Regardless of the conclusion, the Democratic Party will formulate the best rational party stance."