Oh Se-hoon "Long-term Investment Benefits Should Be Provided and Capital Gains Tax Discrimination on Overseas Stocks Must Be Abolished"

"Investors Must Be Freed from the 'Boxpi' and 'Tax Discrimination' Prisons"

Seoul Mayor Oh Se-hoon argued that to revitalize the domestic capital market, clear benefits must be provided to long-term investors and tax exemptions should be extended to overseas stocks.

On the 26th, Mayor Oh stated on Facebook, "Domestic investors have been trapped for years in the endless stagnation prison called 'Boxpi,' while overseas investors remain confined by the unreasonable 'tax discrimination' prison. To achieve the two important goals of increasing citizens' assets and revitalizing the capital market, these two prisons must be boldly dismantled."

Seoul Mayor Oh Se-hoon is speaking at the 1st Seoul Innovation University Support Committee meeting held at the Press Center in Jung-gu, Seoul on February 24, 2025. Photo by Jo Yong-jun

As a measure to this end, he proposed providing definite benefits to long-term investors. Mayor Oh said, "Short-term speculation can never revive the domestic capital market. We must boldly reduce dividend income tax for long-term investors in listed stocks, excluding major shareholders, according to the holding period, or expand the tax-exempt limit of ISA (Individual Savings Account) based on the investment period to actively encourage long-term and sound investments by individuals and institutions."

He added, "Along with this, the total contribution limit and total contribution period of ISA products, which are experiencing explosive demand growth, should be significantly increased, and junior ISA products for minors should be introduced immediately to help them become familiar with the stock market from an early age."

He also suggested a plan to separate taxation on dividend income for general shareholders excluding major shareholders. Mayor Oh said, "Currently, the comprehensive financial income taxation threshold has decreased from 40 million won in 2003 to 20 million won in 2013, resulting in even the middle class bearing a high tax rate burden of up to 49.5%. Dividend income for general shareholders should be separately taxed to provide incentives for citizens to actively participate in the stock market."

He further argued that tax exemptions should be granted for capital gains tax on overseas stocks. Mayor Oh explained, "Although the number of overseas stock investors has increased twelvefold over the past five years, the capital gains tax rate on overseas stocks remains at around 20%. Tax exemptions should be provided for overseas listed stock transactions, just like domestic listed stock transactions, to relieve investors."

Mayor Oh concluded, "We must open the doors of the two prisons called 'Boxpi' and 'tax discrimination' that trap investors and channel citizens' funds into the stock market rather than real estate. Now is the time for the government and political circles to create definite changes to revitalize the stock market."