The Democratic Party's Final Pressure to Abolish the Financial Investment Tax... "Postponement is Like a Ventilator"

Opposition Party Focuses Fire Amid Concerns Over Loss of Momentum to Abolish Financial Investment Tax

The People Power Party on the 27th stated, "The postponement of the Financial Investment Income Tax (FIIT) is like an unstable situation with an artificial respirator attached," focusing the party's efforts on the abolition movement. This is due to concerns that the momentum for abolishing the FIIT could be lost as Lee Jae-myung, leader of the Democratic Party of Korea, hinted at a postponement of implementation.

On the morning of the 30th, at the Supreme Council meeting held at the National Assembly, People Power Party leader Han Dong-hoon demanded the abolition of the FIIT, saying, "The Democratic Party says they will decide and announce their position on the FIIT this week. I really don't understand what is so difficult that they are dragging this out for so long."

In particular, regarding the disclosure of private equity fund subscription details of lawmakers and high-ranking officials, which investors have petitioned for, he said, "Isn't the Democratic Party very sensitive to petitions? But I don't know why they are not responding to this one," and suggested, "It is time to abolish the FIIT and consider disclosing the private equity fund subscription details of high-ranking officials as part of political reform and transparency enhancement." Some investors suspect the opposition party, saying that the FIIT is being implemented because high-value private equity fund subscribers receive significant tax benefits.

Kim Seong-hoon, chairman of the Policy Committee, also said, "Lee Jae-myung indicated on a broadcast that there is a sentiment that 'it should not be implemented now' regarding the FIIT, hinting at a postponement," and added, "Considering the 14 million domestic retail investors who urgently need clarity, it is very regrettable that Lee Jae-myung, the leader of the main opposition party, hinted at postponement rather than abolition, and I would like to ask for reconsideration."

Members of the National Assembly's Planning and Finance Committee from the People Power Party have issued statements and related comments from the spokesperson's office, with not only the leadership but the entire party repeatedly pressuring for the abolition of the FIIT. With less than 100 days remaining until the FIIT implementation, if the conclusion is postponement rather than abolition, the momentum will fade, and confusion will inevitably arise when the postponement period expires.

Ruling party finance committee members held a press conference at the National Assembly Communication Hall on the same day, stating, "The FIIT must be abolished promptly," and pointed out, "If even the Donghak ants, who have supported the domestic stock market in a bearish market where institutions and foreigners are leaving, depart, a domestic stock market crash is a foreseen reality." They continued, "How can the Democratic Party, which perceives stock investment as the exclusive domain of some wealthy people and says that if stocks fall, inverse investment can be done, understand the desperate feelings of individual investors?" and emphasized, "Stop the forced tax increase that the public rejects and the political show that only generates controversy." Spokesperson Kim Hye-ran also questioned through a statement, "Isn't this just a shallow temporary measure to avoid the imminent criticism of the 'Jae-myung tax' by concluding with a 'postponement'?"