'Delay or Implementation'... Democratic Party's Heated Debate on Financial Investment Tax

'Implementation After Supplementation' Gains Weight
3:3 Debate Format Discussion Scheduled for the 24th

Within the Democratic Party of Korea, opinions are divided over the implementation of the Financial Investment Income Tax (FIIT). While the party largely leans toward the 'postponement followed by supplementation' approach favored by leader Lee Jae-myung, some still uphold the principle of opposing 'tax cuts for the wealthy' and insist on implementing the tax as scheduled next year. As the Democratic Party is set to finalize its party stance after a debate on FIIT implementation on the 24th, political circles and investors are closely watching.

According to political sources on the 20th, discussions within the Democratic Party regarding FIIT are heavily inclined toward 'postponement followed by supplementation.' This shift gained momentum after Leader Lee changed his stance from 'supplemented implementation' to 'postponement' in consideration of backlash from individual investors, thereby strengthening the party consensus. Following Supreme Council member Lee Eon-ju’s public call for the party’s first FIIT postponement, lawmakers Park Seon-won, Lee Yeon-hee, and Kim Hyun-jung also expressed agreement.

Furthermore, Chief Supreme Council member Kim Min-seok advocated for a 'three-year postponement' the day before, citing the need for verification time. Kim, a key figure in the pro-Lee Jae-myung faction and regarded as a core member of the 'New Myung Faction,' is seen as actively reflecting Leader Lee’s intentions. In fact, if FIIT implementation is postponed for three years, it would be delayed until after the next presidential election, minimizing FIIT-related risks on Lee’s presidential path.

On the other hand, there are opposing views insisting that FIIT should be implemented as scheduled. Jin Seong-jun, the party’s Policy Committee Chair, is a representative of this stance. Chair Jin maintains the principle, stating, "If you profit by using unpaved roads, you must pay taxes." He distanced himself from opinions suggesting a high likelihood of the party adopting the FIIT postponement stance. In a call, he said, "That is not the case. Nothing has been decided yet because the party discussion process has not been completed."

Additionally, the party’s largest parliamentary group, 'The Better Future,' also opposes the FIIT postponement and supports Chair Jin’s argument. They pointed out that the estimated 150,000 taxpayers subject to FIIT, according to the Ministry of Economy and Finance, represent the top 1% among approximately 14.24 million stock investors. They argue that postponing FIIT equates to a tax cut for the wealthy.

Meanwhile, the Democratic Party has released the lineup for the debate scheduled on the 24th. The lawmakers advocating postponement are Kim Hyun-jung (team leader), Lee So-young, Lee Yeon-hee, Park Seon-won, and former lawmaker Kim Byung-wook, totaling five members. Conversely, those insisting on implementing FIIT include Kim Young-hwan (team leader), Kim Sung-hwan, Lee Kang-il, Kim Nam-geun, and Lim Kwang-hyun. The debate will proceed in a 3 versus 3 format.