Some Propose Partial Abolition... "Increasing Stock Market Instability"
Hantuyon "Stocks Already Priced In... Lee Jae-myung, Compensate Hundreds of Trillions"
The Democratic Party of Korea is set to decide whether to implement the financial investment income tax as scheduled from next year or to postpone it. While some advocate for its abolition, there are also strong voices within the party emphasizing the need to uphold tax justice, making a postponement the likely outcome. However, individual investors continue to call for abolition, arguing that the removal of the financial investment income tax would directly lead to a value-up of the stock market.
Members of the Korea Stock Investors Association, who advocate for the abolition of the financial investment income tax, are protesting on the 24th at the National Assembly, demanding to attend the Democratic Party of Korea's policy lawmakers' meeting discussion on financial investment income tax. Photo by Hyunmin Kim kimhyun81@
On the morning of the 4th, the Democratic Party will hold a policy members' meeting at the National Assembly in Yeouido, Seoul, to reach a conclusion regarding the financial investment income tax. The leadership will make a decision by synthesizing the opinions expressed during the meeting. The leadership also plans to persuade the members by announcing their stance on the tax.
The party leadership is reportedly likely to decide on postponing the financial investment income tax. Although there is pressure from the ruling camp to abolish it, voices insisting on implementing it as planned cannot be ignored. Jin Seong-jun, the Democratic Party Policy Committee Chair, who has advocated for the tax's implementation even at odds with party leader Lee Jae-myung, is a representative figure. It is also reported that Lee has leaned toward postponement. When he ran for party leader in July, he advocated for postponing the tax on the premise of improving stock market-related systems.
The postponement period is expected to extend until after 2028, when the next administration can decide again on whether to implement the financial investment income tax. On the 19th of last month, Kim Min-seok, Senior Supreme Council Member of the Democratic Party, stated on his social media, "The implementation of the financial investment income tax should be postponed by about three years to allow time for stock market reform and stimulus verification," adding, "If we get trapped in the frame of repeating past mistakes, the policy's effectiveness will weaken."
However, there are also some calls for abolition. The first to raise abolition was Democratic Party lawmaker Jeong Seong-ho. On the 25th of last month, on MBC Radio's 'Kim Jong-bae's Focus,' he said, "Looking at recent situations, the financial investment income tax seems to be exacerbating stock market instability," and argued, "It is better to scrap it now." It is also known that abolition voices have emerged within the party leadership. On the 2nd, Han Min-soo, Democratic Party spokesperson, told reporters after the Supreme Council meeting, "There was a meeting among Supreme Council members on the 29th of last month, where some members expressed the opinion that the financial investment income tax should be abolished."
On the 4th, Han Dong-hoon, leader of the People Power Party, visited the protest site held by organizations including the Korea Stock Investors Association in front of the National Assembly main gate, where they were demonstrating against the financial investment income tax, and shouted slogans together with the participants. Photo by Heo Young-han younghan@
The People Power Party, together with the Korea Stock Investors Association, a group of individual stock investors, has pressured the Democratic Party leadership and others to call for the abolition of the financial investment income tax. Jeong Eui-jeong, head of the Korea Stock Investors Association, said, "Stocks are forward-looking. Some mentally unstable Democratic Party lawmakers say nonsense like the stock market fell because of the financial investment income tax even though it hasn't been implemented," adding, "Democratic Party lawmakers who know nothing about the stock market are ruining it." He further emphasized, "The financial investment income tax has already caused a stock price crash for a year; it should be abolished, and Leader Lee should compensate hundreds of trillions of won." Han Dong-hoon, leader of the People Power Party, said, "The abolition of the financial investment income tax is almost here," and added, "Our politics will not stop at abolishing the tax but will take steps to value-up and normalize the Korean stock market."
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