Koo Yoonchul: "We Will Carefully Decide on Major Shareholder Criteria in a Timely Manner"

"If Investors Were Hurt, I Sincerely Apologize"
Koo Yoonchul Addresses Criticism Over Stricter Major Shareholder Criteria

Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul is speaking at the plenary session of the Special Committee on Budget and Accounts held at the National Assembly on August 25, 2025. Photo by Kim Hyunmin

Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul stated on August 25 that regarding the revision of the criteria for major shareholders subject to capital gains tax on stocks, "We will make a careful decision and announce it in a timely manner."

Deputy Prime Minister Koo made this remark in response to a question from a lawmaker about the timing of the announcement of the major shareholder criteria during the comprehensive policy inquiry session of the Special Committee on Budget and Accounts at the National Assembly that day.

In response to criticism from People Power Party lawmaker Cho Eunhee, who pointed out that "there are supporters of the ruling party who criticize that the announcement of stricter major shareholder criteria caused a sharp drop in stock prices," Koo said, "If investors were hurt or angered by this, I sincerely apologize."

Regarding the observation that stock prices plummeted on the day the government announced its tax reform plan centered on tightening the major shareholder criteria, he said, "I do not think the tax reform plan played no role; it was likely a combination of factors." He added, "If the tax reform plan also contributed to that, I apologize."

Last month, the Ministry of Economy and Finance unveiled a tax reform plan to strengthen the major shareholder criteria from holding 5 billion won per stock to 1 billion won per stock. However, as controversy grew that this did not align with the Lee Jaemyung administration's policy stance of revitalizing the stock market, the Democratic Party of Korea conveyed its opinion to maintain the original plan to the government.

The revision of the criteria for capital gains tax on major shareholders is a matter of amending the enforcement decree, not the law itself, so the final decision rests with the government.

In response to a question from Democratic Party of Korea lawmaker An Dogeol regarding the government's expansionary fiscal stance, Deputy Prime Minister Koo said, "If we focus solely on maintaining fiscal soundness, it could actually deteriorate fiscal health in the mid- to long-term." He continued, "If bold investments produce results, it will create a virtuous cycle of economic growth, allowing us to secure fiscal soundness in the long run."

He emphasized, "When it comes to reviving the economy, we must increase active spending when needed."

He also stated, "Uncertainties surrounding our economy, both domestically and internationally, remain high. In fiscal management, we will push forward with strong restructuring in low-performing sectors and focus the freed-up resources on high-performing areas to enhance the efficiency of fiscal operations." He added, "We will also work to expand the tax base through rational tax reform and the review of tax exemptions and reductions."