Jung Cheongrae Urges Policy Chief to Prepare Solution for Stock Capital Gains Tax

Over 110,000 Sign Petition Opposing Tax Reform

On August 4, Democratic Party leader Jung Cheongrae presided over the Supreme Council meeting at the National Assembly and stated, "It does not seem appropriate to publicly debate the capital gains tax on stocks," adding, "We will have sufficient discussions behind closed doors, so I ask our lawmakers to refrain from making public statements on this issue."

Jeong Chungrae, the newly appointed leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly in Yeouido, Seoul, on the 4th. Photo by Yonhap News

This message from the new party leader comes amid ongoing concerns within and outside the ruling party regarding the government's proposed tax law amendment, which would lower the threshold for major shareholders subject to capital gains tax from 5 billion won to 1 billion won. Previously, on August 1, Democratic Party floor leader Kim Byungki assigned the review of a possible increase in the 1 billion won major shareholder threshold to the party's 'KOSPI 5000 Special Committee' and 'Tax Normalization Special Committee.'

Jung stated, "Policy Committee Chairperson Han Jeongae will prepare both Plan A and Plan B today and report them to the Supreme Council. We will finalize our position as quickly as possible and inform the public."

As of 10:00 a.m. on August 4, more than 110,000 people had signed a petition opposing the tax reform bill, which was posted on the National Assembly's public consent petition board on July 31. If more than 50,000 people agree to a petition within 30 days of its posting, the National Assembly is required to officially review it.

There has even been a petition demanding the expulsion of former Policy Committee Chairperson Jin Sungjoon, who has supported the government’s proposal. Jin explained, "Restoring the capital gains tax threshold to 1 billion won is a measure to restore the (damaged) tax revenue base," but the controversy only intensified. Lawmaker Lee Yeonhee stated, "It is irresponsible to simply assume that strengthening the major shareholder criteria will not destabilize the market."