Jin Sungjoon Raises Concerns Over Dividend Income Tax Reform: "Only a Handful of Stock Conglomerates Will Benefit"

Jin Sungjoon Stresses "Cautious Approach Needed"
Top 1% Monopolize 67.5% of Total Dividend Income

On July 25, Jin Sungjoon, Policy Committee Chair of the Democratic Party of Korea, urged a cautious approach regarding the government's reported plan to revise the stock dividend income tax system. He emphasized that the system must be carefully designed, considering the reality that such reforms could benefit only a very small number of conglomerates.

On July 25, Jin expressed his stance through social networking services (SNS), stating, "The revision of the stock dividend income tax system must be approached with caution."

Jinseong Jun, Policy Committee Chair of the Democratic Party of Korea, is speaking at the heatwave countermeasure party-government meeting held at the National Assembly Members' Office Building on July 15, 2025. Photo by Hyunmin Kim

While acknowledging the background for discussing this reform, Jin pointed out the concentration of dividend income among a very small group. He said, "The revision of the stock dividend income tax system is being actively discussed by both the government and the National Assembly," and added, "The purpose is to adjust related tax policies to vitalize the capital market and increase national income." He further explained, "Compared to foreign countries, Korean companies pay excessively low dividends to shareholders. Most stock investors also aim for capital gains rather than dividend income," adding, "There is a need for policy measures to encourage companies to increase dividends."

However, he also noted, "As of 2023, 17,464 people, which is the top 0.1%, took 45.9% (13.8842 trillion won) of the total dividend income. If we expand this to the top 1%, they account for 67.5% (20.3915 trillion won) of the total dividend income," and said, "This means that 1 out of 100 stock investors takes 70% of all dividend income."

Jin stressed, "The revision of the dividend income tax system must be approached with great caution," and warned, "Otherwise, only a very small number of stock conglomerates will benefit, while the vast majority of retail investors will hardly see any benefit." He further raised the issue, "Even if the tax reform leads to increased dividends by companies, retail investors might only gain a few thousand won, while a handful of conglomerates could make tens of billions of won. Can we really call this fair?"

Previously, the government had been strongly considering including the separate taxation of dividend income in its tax reform plan. There is also discussion about applying lower tax rates to dividends from companies with high payout ratios. Earlier, Democratic Party lawmaker Lee Soyoung proposed a revision to the Income Tax Act that would provide separate taxation benefits to listed companies with a dividend payout ratio of 35% or higher.

However, with the ruling party's Policy Committee Chair emphasizing a cautious approach and raising concerns regarding the government's ongoing tax reform efforts, the issue is drawing attention.