Ruling Party Lawmakers Skip Co-hosted Tax Reform Roundtable Amid 'Gag Order'

Co-hosting Lawmakers Oh Ki-hyung, Choi Ki-sang, and Kim Younghwan Absent
Party Leadership Also Refrains from Stating Position on "Stock Capital Gains Tax"

Democratic Party lawmakers did not attend an urgent roundtable held on the 7th with civil society and labor groups to gather opinions on securing tax revenue and tax reform. The absence appears to be influenced by a party-wide gag order within the Democratic Party, as the tightening of the major shareholder threshold for the capital gains tax on stocks has emerged as a contentious issue.

On the 7th, attendees are taking a commemorative photo at the urgent roundtable on the 2025 tax reform plan, involving the Democratic Party and other progressive groups, held at the National Assembly Members' Office Building. August 7, 2025. Photo by Kim Hyunmin

According to political sources on August 7, Democratic Party lawmakers Oh Ki-hyung, Choi Ki-sang, and Kim Younghwan, all members of the National Assembly Strategy and Finance Committee and co-hosts of the event, did not attend the "Urgent Roundtable on the 2025 Tax Reform Plan: Analysis and Evaluation of the New Government's First Tax Reform Plan to Overcome the Fiscal Crisis," which was held at 10 a.m. in Meeting Room 1 of the National Assembly Members' Office Building. The roundtable was co-hosted by three Democratic Party lawmakers, Choo Kyugeun of the Rebuilding Korea Party, as well as representatives from labor and civil society organizations.

The recent tax reform plan, which includes tightening the major shareholder threshold for capital gains tax on stocks from 5 billion won to 1 billion won, has become a subject of debate even within the ruling party. Lawmaker Jin Sungjoon argues that restoring the corporate tax by 1%, reinstating the securities transaction tax by 0.05%, and returning the capital gains tax threshold on stocks to 1 billion won are measures to restore the revenue base to its original state. On the other hand, about ten lawmakers including Lee Soyoung have stated that President Lee Jaemyung pledged to achieve KOSPI 5000, and that special provisions are needed to encourage the movement of assets from the real estate market to the capital market. Democratic Party leader Jung Cheongrae has issued a gag order, instructing lawmakers to refrain from making public statements and engaging in activities. Kim Hyunjung, Democratic Party spokesperson, said, "The party-government consultation will naturally take place this Sunday (the 10th), and we will deliver the party's opinions. No official decision has been made yet."

Meanwhile, Kim Hyundong, professor of business administration at Paichai University, argued in his presentation at the roundtable, "In principle, the implementation of the financial investment income tax is desirable, but now that its implementation has failed, restoring the scope of capital gains taxation on listed stocks to its original state is the minimum necessary measure."

Yoo Horim, professor of tax accounting at Kangnam University, argued, "If the purpose of taxing capital gains for major shareholders is to secure tax revenue, it is more reasonable to tax based on capital gains (the profits earned from stock trading in a given year) rather than the criteria for major shareholders (i.e., share value and share ratio)."