Koo Yoon-chul: "Stock Capital Gains Tax Threshold to Remain at 5 Billion Won" (Comprehensive)

Policy Withdrawn in Response to Criticism Over Hindering Capital Market Revitalization
Chuseok Measures Include Supplying 172,000 Tons of Key Seasonal Products
43 Trillion Won in Holiday Funds and Support for Overdue Wage Settlement

The government has decided to withdraw its plan to ease the criteria for major shareholders subject to the capital gains tax on stocks, a policy that had been criticized as running counter to efforts to revitalize the capital market.

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul announced at the 'Chuseok Livelihood Stabilization Measures Party-Government Meeting' held at the National Assembly on September 15, 2025, that "the threshold for major shareholders subject to the capital gains tax on stocks will remain at 5 billion won." Koo explained, "After the announcement of the tax reform plan, we deliberated extensively between normalizing the shareholder-based capital gains tax and revitalizing the capital market," adding, "Taking into account both the public's desire for a more vibrant capital market and the Democratic Party's stance on maintaining the major shareholder threshold, we have decided to keep it at 5 billion won."

Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul is speaking at the 'Chuseok Livelihood Stabilization Measures Party-Government Meeting' held at the National Assembly Members' Office Building on September 15, 2025. Photo by Kim Hyun-min

In addition, the government will continue to implement policies to develop the capital market and enhance corporate value, including the establishment of a National Growth Fund worth 150 trillion won and support for the introduction of Business Development Companies (BDC).

Previously, in July, the government had proposed lowering the major shareholder threshold for the capital gains tax on stocks from the current 5 billion won per stock to 1 billion won in its tax law revision plan. However, concerns were raised in the stock market that this could lead to a sharp decline in stock prices due to large-scale sell-offs aimed at avoiding the tax. Regarding this, President Lee Jaemyung stated at a press conference marking his 100th day in office on September 11, "If revitalizing the stock market would be hindered to such an extent, there is no need to insist on the change."

Meanwhile, the Democratic Party and the government have announced measures to stabilize prices ahead of Chuseok, including increasing supplies of key holiday goods such as apples, pears, and jujubes. Han Jeongae, the Democratic Party's Policy Committee Chair, said, "To stabilize the prices of key holiday goods, we will expand the supply of apples and pears to three times the usual level, chestnuts to four times, and jujubes to eighteen times, bringing the total supply of major holiday goods to an all-time high of 172,000 tons." To stabilize rice prices, an additional 25,000 tons of rice will be supplied, and a 20% additional discount will be provided to vulnerable groups. To ease the financial burden on small business owners, a record 43.2 trillion won in holiday funds will be provided. There will also be a temporary reduction in loan interest rates to support the settlement of overdue wages.