Kim MiAe of People Power Party Proposes Income Tax Act Amendment to Lower Dividend Tax Rate from 14% to 9%

"Reducing the Tax Burden for Small-Scale Investors"

On August 8, Kim MiAe, a member of the People Power Party, announced that she had proposed a partial amendment to the Income Tax Act as the lead sponsor. The bill aims to ease the burden on individual investors by lowering the withholding tax rate on dividend income from the current 14% to 9%.

On the 29th, at the 4th meeting of the People Power Party's Task Force to Resolve the Pediatric and Adolescent Medical Crisis held at the National Assembly, TF Chair Kim Miae is speaking. Photo by Kim Hyunmin kimhyun81@

Recently, the government has been pursuing tax reforms that include an increase in the securities transaction tax and a strengthening of the capital gains tax for major shareholders. As a result, anxiety among individual investors has been rising. There are concerns that the taxation structure for dividend income and capital gains from stocks could undermine market vitality. More than 100,000 people agreed to a petition opposing the strengthening of the capital gains tax for major shareholders in just one day.

Through the proposed amendment, Kim aims to alleviate the tax burden on small-scale investors. She also explained that encouraging dividend investment would help revitalize the capital market and support wealth accumulation for the public.

Kim stated, "We must provide a fair tax environment for small-scale investors who are struggling due to the increase in transaction taxes and the strengthening of the capital gains tax for major shareholders. This will help revive the vitality of the domestic capital market and support the accumulation of assets by the public." She expressed hope that if the amendment passes, it would increase incentives for individual investors to make long-term investments and have a positive effect on boosting investment by domestic companies.