Innovation Party, Second Day of Opposition... "Regret Lee's Abolition of Financial Investment Tax, Will Cast a No Vote"

The Party for National Innovation announced on the 5th that it will continue to oppose the Democratic Party of Korea, which officially decided to abolish the Financial Investment Income Tax (FIIT), and will cast opposing votes in the plenary session for the second day.

Hwang Unha, the floor leader of the Innovation Party, held a floor strategy meeting at the National Assembly on the same day and expressed deep regret toward the Democratic Party, saying, "We deeply regret the decision that retreats from the principle of taxation," and added, "Once the principle of taxation is broken, it is very difficult to restore."

Earlier, Leader Lee stated at the Supreme Council meeting the previous morning, "We have agreed to abolish the FIIT pushed by the government and the ruling party," adding, "According to principles and values, it would be right to enforce (the FIIT) even if it involves pain, but the current stock market is too difficult."

Floor leader Hwang said, "We fully understand the difficulties of the Korean stock market and are not unaware of the pettiness of the government and ruling party using this as a political struggle," but also argued, "I question whether it was the best for the Democratic Party to respond in the same way as the ruling party."

Hwang Unha, floor leader of the Joguk Innovation Party, is speaking at the members' meeting held at the National Assembly on the 23rd. Photo by Kim Hyunmin kimhyun81@

He then emphasized, "The FIIT-related bill is expected to be processed in the plenary session in November through bipartisan agreement," and "All members of our Party for National Innovation will cast opposing votes." However, even if all Innovation Party members vote against it, it is expected to be difficult to block the bill's passage as the People Power Party and the Democratic Party have settled on abolishing the FIIT.

Floor leader Hwang added, "Whether it was a brilliant move or a blunder after long consideration, history will tell. Once principles collapse, they collapse more easily next time," and "The Party for National Innovation will uphold the taxation principles for the community."

He also said the previous day, "If the leader of the main opposition party joins in the government's and ruling party's efforts to cut taxes, who will protect the livelihood of the people?" and asked, "If the FIIT is abolished, how will Leader Lee's representative philosophy of the basic income policy be promoted, and how will the livelihood recovery support fund be prepared?"

Introduced in 2020, the FIIT is a system that taxes profits earned from financial investments exceeding a certain threshold (such as 50 million KRW in stocks). With its implementation scheduled for January 1, 2025, the People Power Party has advocated for the abolition of the FIIT, but the system's implementation is expected to be canceled through the plenary session.