Han Donghoon Urges Withdrawal of Democratic Party's Key Bills
"More People Invest for Their Own Future"
Democratic Party Postpones Yellow Envelope Act, Debates Capital Gains Tax
Han Donghoon, former leader of the People Power Party, defined the Democratic Party of Korea’s proposed expansion of the capital gains tax on stock transfers, increase in securities transaction tax, and the so-called Yellow Envelope Act as the “three anti-stock market measures.” He stated, “The Democratic Party, which is already losing to the market, must withdraw these bills before it is too late.” On August 4, through social media, Han said, “Ahead of the Democratic Party administration’s push for the ‘three anti-stock market measures,’ short selling transactions have surged, and for the first time since short selling resumed in March this year, the net short position in the KOSPI market has exceeded 10 trillion won.”
Han further stated, “The Democratic Party administration is already losing to the market,” and added, “Contrary to their earlier pledges, the Democratic Party gave up and postponed the plan to submit the Yellow Envelope Act to the plenary session today.” He continued, “Sooner or later, they will have no choice but to admit that they cannot win against the market,” and pointed out, “The 15 million people who invest their hard-earned money for their future far outnumber the small but vocal group of hardline Democratic Party supporters who want the ‘three anti-stock market measures.’”
According to the Korea Exchange, from July 28 to August 1, the short selling transaction amount in the KOSPI market reached 5.1153 trillion won. This is a 41.2% (1.4914 trillion won) surge in just one week, compared to the previous week’s five trading days, when the amount was only 3.6239 trillion won. As a result, the net short position in the KOSPI market, which stood at 8.6726 trillion won at the end of June, increased by 15.3% to 10.0030 trillion won at the end of last month. This is the first time since the resumption of short selling in March that the figure has surpassed 10 trillion won.
Jeong Cheongrae, leader of the Democratic Party, is speaking at the Supreme Council meeting held at the National Assembly on the 4th. Photo by Kim Hyunmin
The Democratic Party was initially expected to prioritize the Yellow Envelope Act at the National Assembly plenary session on August 4, but just before the session, they decided to submit the Broadcasting Act instead. Jeong Cheongrae, leader of the Democratic Party, stated, “Today, legislative reforms for people’s livelihoods will be submitted to the plenary session,” and added, “Although there were some twists and turns, the three broadcasting laws, which are part of the media reform?one of the prosecution, media, and judicial reforms?will be submitted and processed first.”
Previously, the Democratic Party had faced backlash from investors and internal disputes over a plan to lower the threshold for major shareholders subject to the capital gains tax on stocks from 5 billion won to 1 billion won, prompting the party to quickly come up with countermeasures. At the Supreme Council meeting that day, Jeong stated, “There is heated debate over the capital gains tax on stocks, but it is not appropriate to have public disputes within the party,” and added, “From this moment on, we will have sufficient discussions on this issue behind closed doors, so I ask lawmakers to refrain from making public statements.” He continued, “I ask Policy Committee Chair Han Jeongae to prepare both Plan A and Plan B and report to the Supreme Council today,” and said, “We will finalize our position soon and inform the public.”
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