The Democratic Party of Korea announced the lineup for the debate on the introduction of the Financial Investment Income Tax (FIIT) scheduled for the 24th. Regarding the FIIT, the debate will be divided into the 'postponement team' and the 'implementation team,' and after the discussion, the results will be adopted as the party's official stance through the Democratic Party's policy members' general meeting.
Min Byeong-deok, the Democratic Party's policy debate preparation committee chairman, announced the participating lawmakers at a press conference on the 20th. The team advocating for postponing the FIIT includes Kim Hyun-jung (team leader), Lee So-young, Lee Yeon-hee, Park Seon-won, and former lawmaker Kim Byung-wook, totaling five members. On the other hand, those advocating for the implementation of the FIIT are Kim Young-hwan (team leader), Kim Seong-hwan, Lee Kang-il, Kim Nam-geun, and Lim Gwang-hyun. The debate will proceed in a 3 versus 3 format.
Min said, "(After the debate) the policy general meeting will be held, but I think the leadership will make the decision," adding, "Whether there will be a vote or the leadership will make a decision will be determined by the leadership." Regarding the criticism that the party leadership is leaning toward the postponement camp, he requested, "Please do not say that a direction has already been decided or that the leadership is talking about postponement before the debate even starts."
The reason the Democratic Party is holding a debate on whether to implement the FIIT is due to sharply divided opinions within the party. While the 'postpone and supplement' stance, which reflects the intention of leader Lee Jae-myung, generally holds weight, some still insist on implementing it as scheduled next year, citing the principle of opposing 'tax cuts for the rich.'
Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 28th. Photo by Kim Hyun-min kimhyun81@
Previously, Leader Lee advocated for 'supplemented implementation' but shifted to 'postponement' after considering backlash from individual investors. Supreme Council member Lee Eon-ju was the first to publicly advocate for postponement within the party, followed by lawmakers Park Seon-won, Lee Yeon-hee, and Kim Hyun-jung. Subsequently, Chief Supreme Council member Kim Min-seok also argued for a 'three-year postponement,' stating that verification time is needed before introducing the FIIT. Kim, a key figure in the pro-Lee Jae-myung faction and considered a core member of the 'New Myung-gye' (New Lee Jae-myung faction), is believed to have actively reflected Leader Lee's intentions in his three-year postponement proposal. In fact, if the FIIT application is postponed for three years, its implementation would be delayed until after the next presidential election, minimizing the FIIT risk on Leader Lee's presidential path.
On the other hand, there are opinions insisting that the FIIT should be implemented as scheduled. Jin Seong-jun, the party's policy committee chairman, is a representative of this view. Jin maintains the principle, saying, "If you profit by using unpaved roads, you must pay taxes." He distanced himself from the view that the postponement camp is likely to be adopted as the party's official stance. In a conversation, he said, "That is not true. Nothing has been decided yet because the internal party debate process has not been completed."
Additionally, 'The Better Future,' the largest lawmaker group within the party, also opposes postponing the FIIT and supports Jin's argument. They pointed out that the estimated 150,000 taxpayers subject to the FIIT, according to the Ministry of Economy and Finance, represent the top 1% among approximately 14.24 million stock investors. They argue that postponing the FIIT equates to a tax cut for the wealthy. From the FIIT implementation side, lawmaker Lim Gwang-hyun, participating in the debate, is pushing for supplementary legislation to increase the basic deduction for domestic stocks from 50 million KRW to 100 million KRW annually.
Meanwhile, the People Power Party pressured the Democratic Party by advocating for the abolition of the FIIT. Chu Kyung-ho, the People Power Party floor leader, sharply criticized at the floor strategy meeting, "Those advocating postponement within the Democratic Party are setting various conditions, but this only fuels market confusion."
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