Over 70,000 Sign Petition in Just Two Days
Jin Sungjoon, the Policy Committee Chair of the Democratic Party of Korea, publicly expressed opposition after Kim Byungki, the party's floor leader, stated that the party could reconsider the tax reform plan to lower the major shareholder threshold for stock capital gains tax from 50 billion won to 10 billion won.
Jin Sungjun, the Policy Committee Chairman of the Democratic Party of Korea, is leaving after a closed party-government meeting on the tax reform plan held at the National Assembly Members' Office Building on the 29th of last month. Photo by Kim Hyunmin
On August 2, Jin Sungjoon explained, "Many investors and experts claim that if we revert the requirements for the stock capital gains tax, our stock market will collapse, but precedent shows otherwise." He continued, "During the Park Geunhye administration, the threshold was lowered from 10 billion won per stock to 5 billion won, then to 2.5 billion won. Under the Moon Jaein administration, it was further reduced from 2.5 billion won to 1.5 billion won, and then again to 1 billion won. However, there was almost no change in stock prices at those times."
Jin Sungjoon added, "The Yoon Sukyeol administration raised this threshold significantly from 1 billion won to 5 billion won, claiming it would revitalize the stock market, but in fact, stock prices have declined. Measures such as restoring the 1 billion won threshold for the stock capital gains tax are actions to recover the tax revenue base that was undermined by the Yoon Sukyeol administration."
He further stated, "The government must not only pursue various national tasks simultaneously and in a balanced manner, but also secure hundreds of trillions of won in funding to do so. The party and the government have closely coordinated during the preparation of the tax reform plan and will continue to do so during the National Assembly's review process."
Previously, Kim Byungki, acting party leader, said the day after the government announced the tax reform plan, "We will review the possibility of raising the 1 billion won major shareholder threshold, focusing on the KOSPI5000 Special Committee and the Tax Normalization Special Committee within the party." This statement came as the stock market experienced its largest drop in four months the previous day.
On the same day, Jin Sungjoon met with reporters at KINTEX in Goyang City, where the party convention was being held, and said, "The reform plan has not been finalized, so we need to monitor the situation in the stock market before making a judgment." He added, "I do not think the reform plan has been shaken by Kim's remarks."
Currently, on the National Assembly's public petition board, a petition opposing the lowering of the major shareholder capital gains tax threshold has received over 50,000 signatures in just one day. The petitioner wrote, "If the tax on US stocks and Korean stocks is the same, who would foolishly invest in Korean stocks? Do not kick away the ladder at 1 billion won. Please stop lowering the major shareholder capital gains tax threshold." As of 3:00 p.m., the number of signatures had surpassed 72,000.
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