Jin Sungjoon Opposes Review of Major Shareholder Capital Gains Tax Threshold, Stresses Need to Secure Revenue Base

Past Precedents Show Little Impact of Capital Gains Tax Criteria on Stock Prices
Jin Sungjoon: "Government's Tax Law Aims to Restore Revenue Base Damaged by Yoon Administration"
Kim Byungki Previously Suggested Reviewing Increase of Major Shareholder Threshold

Jin Sungjoon, the Policy Committee Chair of the Democratic Party of Korea, has come forward in support of the government's proposed tax law revision, which would lower the threshold for major shareholders subject to capital gains tax on stocks from 5 billion won to 1 billion won. He has openly opposed the plan to potentially raise the major shareholder threshold, which has been justified by the need to secure tax revenue.

On August 2, through social media, Jin cited past precedents to argue for the need to strengthen the capital gains tax requirements for stocks. He stated, "During the Park Geunhye administration, the threshold was lowered from 10 billion won per stock to 5 billion won, and 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 to 1 billion won. However, there was almost no change in stock prices at the time." He continued, "The Yoon Sukyeol administration claimed it was revitalizing the stock market by raising the threshold from 1 billion won to 5 billion won, but, on the contrary, stock prices fell."

He thus questioned the analysis that the previous day's stock market crash was caused by the strengthening of the capital gains tax criteria.

Jin also stressed the need to secure tax revenue. He said, "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 for these tasks." He explained, "Restoring the 1% corporate tax, reinstating the 0.05% securities transaction tax, and returning the capital gains tax threshold to 1 billion won are all measures to restore the revenue base damaged by the Yoon Sukyeol administration."

Jin Sungjun, chairman of the policy committee of the Democratic Party of Korea, is speaking at the party-government meeting on heatwave measures held at the National Assembly Members' Office Building on July 15, 2025. Photo by Kim Hyunmin

Jin emphasized, "This tax reform plan is intended to secure funding for national tasks under the Lee Jaemyung administration, including the KOSPI 5000 initiative, and, above all, to restore the revenue base damaged by the Yoon Sukyeol administration." He added, "The party and the government have worked closely together in preparing this tax reform plan, and will continue to do so during the National Assembly's review process."

The previous day, Kim Byungki, acting leader and floor leader of the Democratic Party, stated via social media, "There are many voices of concern and worry regarding the tax reform plan." He added, "We will review the possibility of raising the 1 billion won major shareholder threshold, focusing on the party's 'Tax Normalization Special Committee' and the 'KOSPI 5000 Special Committee.' We will focus on alleviating investor distrust through close cooperation between the party and the government." In effect, he suggested the possibility of the government raising the major shareholder threshold for capital gains tax.