At the Democratic Party's Financial Investment Tax Debate, "Invest in Inverse Funds"... Retail Investors' Outrage

"Did Iwan-yong also take the inverse?"
Handonghun joins the wave of criticism

At a Financial Investment Income Tax (금투세) forum held by the Democratic Party of Korea, remarks suggesting that if the domestic stock market is expected to decline, investors should bet on 'inverse' products?essentially betting on a downward trend in the stock market?have angered retail investors. Han Dong-hoon, leader of the People Power Party, also joined the chorus of criticism, putting pressure on the opposition party centered around the financial investment income tax.

Park Chan-dae, floor leader of the Democratic Party of Korea, is speaking at the Democratic Party of Korea policy members' meeting held at the National Assembly on the 24th under the theme "A Happy and Just Republic of Korea, How to Implement the Financial Investment Income Tax?" Photo by Kim Hyun-min kimhyun81@

On the 24th, at a policy forum held at the National Assembly in Yeouido, Seoul, Kim Young-hwan, a Democratic Party lawmaker from the Financial Investment Income Tax Implementation Team, said, "If you believe the stock market is going downward, you can invest in inverse products," adding, "In the derivatives market, there are people who profit even when stock prices fall." An inverse product refers to a derivative that bets on a declining market, expecting stock prices to drop. This was Kim’s response to a question from former Democratic Party lawmaker Kim Byung-wook, who asked whether implementing the financial investment income tax was unreasonable amid the deepening decoupling phenomenon between the U.S. and domestic stock markets.

Individual investors reacted strongly to Kim’s remarks. On the Democratic Party’s official YouTube channel 'DeliMinju,' viewers of the policy forum video commented, "This is the first time I’ve seen a politician tell us to invest in inverse products," and "Is a member of the National Assembly telling us to invest while the country is collapsing?" There was even a metaphor comparing this to Lee Wan-yong, a notorious pro-Japanese collaborator, betting on the Joseon Dynasty’s version of inverse products.

Han Dong-hoon, leader of the People Power Party, also criticized Kim’s statement. On the same day, Han posted on his social media, "Is the Democratic Party suggesting we invest in the inverse of South Korea?" The People Power Party leadership held a 'Petition Ceremony to Abolish the Financial Investment Income Tax to Save 14 Million Individual Investors' and met with members of the Korea Stock Investors Association. Choo Kyung-ho, floor leader of the People Power Party, stated, "The answer to our current stock market situation is the abolition of the financial investment income tax. We will make sure to see its repeal through."