Handonghun "High-ranking Officials Must Disclose Private Equity Fund Subscription Details"

"Democratic Party Faces Many Questions Over Implementing Financial Investment Tax Due to Private Equity Funds"

Han Dong-hoon, the leader of the People Power Party, said that the option of disclosing high-ranking public officials' private equity fund subscription details should be actively considered. This comes amid the Democratic Party's failure to establish a party stance on the financial investment income tax (금투세), as there are cases where the highest tax rate on private equity funds could be lowered when the tax is implemented.

[Image source=Yonhap News]

At the Supreme Council meeting held at the National Assembly on the 30th, Han said, "In August, there was a petition submitted to the National Assembly's Public Administration and Security Committee demanding the disclosure of private equity fund subscription details among the asset disclosures of lawmakers and high-ranking public officials." He added, "The Democratic Party is very sensitive to petitions, so I don't understand why they haven't responded to this one."

Han stated, "Currently, the details of private equity fund subscriptions are not disclosed at all," and "They are simply grouped under other financial assets and only the total amount is shown. Many citizens believe disclosure is necessary." He continued, "Although not in all cases, in some instances, the highest tax rate on private equity funds can be reduced from 49.5% to 20%, resulting in tax savings," emphasizing, "Because of this, many investors raise concerns and suspicions that the financial investment income tax is being implemented for such reasons."

This is not the first time Han has mentioned private equity funds in relation to the financial investment income tax. In August, he criticized that the financial investment income tax applies to private equity fund 'redemptions,' which could lower the highest tax rate. He argued that the Democratic Party is trying to reduce the highest tax rate on private equity funds, which are investment tools for the wealthy.

Han urged the Democratic Party to promptly finalize its position on the financial investment income tax. He said, "The Democratic Party says it will finalize and announce its stance on the financial investment income tax this week," adding, "I don't understand what is so difficult that it takes this long. Such actions that foster uncertainty seriously harm South Korea's capital market."