Han Donghoon Criticizes Lee Administration: "Anti-Stock Market Policies Signal Indifference to Market Collapse"

Democratic Party to Introduce Yellow Envelope Act and Three Broadcasting Laws
People Power Party Announces Plan for Filibuster

Former People Power Party leader Han Donghoon criticized the various tax policies being pushed by the Lee Jaemyung administration and the Democratic Party of Korea, saying, "This is a clear signal from the new government that it does not care even if the domestic stock market collapses in the future."

On the 3rd, Han stated on his social media, "President Lee Jaemyung declared he would make the KOSPI reach 5,000, but the market does not respond to the words of those in power, it responds to their actions." He continued, "Policies such as expanding the capital gains tax base by lowering the major shareholder threshold to 1 billion won, increasing the securities transaction tax, and the so-called Yellow Envelope Act (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), are being pushed all at once like a military operation, acting as anti-stock market policy bombs." He further predicted, "The market will respond harshly to this clear signal that the government does not care if the domestic stock market collapses. Young people and small investors in Korea will be the ones who suffer the most."

Former People Power Party Leader Han Donghun. Photo by Kim Hyunmin

Han especially emphasized, "Due to the anti-stock market tax hike policies (such as expanding the capital gains tax base and raising the securities transaction tax) being pursued by the Democratic Party administration, our stock market and investors have already suffered historic and severe damage last week." He added, "Regardless of the outcome, the ongoing US tariff negotiations will make things worse for our companies compared to now, and are highly likely to put downward pressure on the stock market." On the 1st, Han also criticized, "The Democratic Party administration has declared the era of KOSPI 5,000, but in reality, it is encouraging an 'exit from the domestic market.'"

Previously, on July 31, the government announced a "tax increase and tax reform plan," which included lowering the major shareholder threshold for capital gains tax from 5 billion won per stock to 1 billion won, thereby increasing the number of major shareholders subject to capital gains tax. As a result, on August 1, the domestic stock market plunged sharply, falling by 3.88% in a single day. There was criticism in the market that "the government claims it will usher in the KOSPI 5,000 era, but is instead introducing policies that block it."

Meanwhile, the ruling and opposition parties are expected to clash again over key bills to be dealt with at the final plenary session of the July extraordinary session of the National Assembly scheduled for the afternoon of the 4th. The Democratic Party of Korea has set out to bring up and process bills that were previously scrapped due to President Yoon Sukyeol's veto during his administration. In response, the People Power Party has announced plans for a filibuster, an unlimited debate. It is reported that the Democratic Party is currently coordinating opinions on which bill to process first at the plenary session among the Yellow Envelope Act, the second amendment to the Commercial Act, and the three broadcasting laws (the Broadcasting Act, the Foundation for Broadcast Culture Act, and the Korea Educational Broadcasting System Act).