Jin Sung-jun, chair of the policy committee of the Democratic Party of Korea, reiterated the need for tax reform to strengthen the threshold for major shareholders who are subject to capital gains tax on stock transfers from 5 billion won to 1 billion won. The day before, following a sharp decline in the domestic stock market, floor leader Kim Byung-ki indicated that the government's announcement could be re-examined, prompting Jin to publicly express a de facto opposition stance.
On the 2nd, Jin stated on his Facebook, "Last Friday (the 1st), our stock index fell sharply, and I understand that stock investors must have been upset and angry." However, he added, "The Lee Jae-myung government's national administration goals are not merely about reaching a KOSPI of 5,000. To achieve this, we need to secure a budget of hundreds of trillions of won."
Jin further noted, "However, in the three years of Yoon Suk-yeol's administration, revenue loss exceeded 86 trillion won, and due to this, a revenue adjustment is expected this year as well." He emphasized, "Restoring the revenue base that the Yoon Suk-yeol administration has damaged through tax cuts for the wealthy over three years is a priority. Measures such as restoring corporate tax by 1%, reinstating the securities transaction tax of 0.05%, and reverting the capital gains tax threshold for stock transfers back to 1 billion won are all actions to restore the revenue base that was undermined by the Yoon Suk-yeol administration."
He added, "During the Park Geun-hye government, the threshold for capital gains tax on stock transfers was lowered from 10 billion won to 5 billion won, then to 2.5 billion won. During the Moon Jae-in government, it was further lowered from 2.5 billion won to 1.5 billion won, and then to 1 billion won, but the stock price fluctuations were almost negligible." He emphasized, "Although the Yoon Suk-yeol administration has claimed to invigorate the stock market by significantly reversing this requirement from 1 billion won back to 5 billion won, the stock prices have actually declined."
He stated, "This tax reform plan aims to secure the resources needed for the national administration tasks of the Lee Jae-myung government, including a KOSPI of 5,000, and most importantly, to restore the revenue base that has been damaged by the Yoon Suk-yeol administration." He added, "The party and the government have closely coordinated during the preparation process of the tax reform plan, and will continue to do so throughout the National Assembly review process."
Previously, on the 31st of last month, the government announced the '2025 tax reform plan,' which includes lowering the threshold for major shareholders subject to capital gains tax from 5 billion won to 1 billion won. As a result, on the 1st, the KOSPI index fell by 3.88%, and the KOSDAQ index dropped more than 4%. A petition titled "Opposition to lowering the capital gains tax for major shareholders" was posted on the National Assembly's public petition bulletin board, receiving over 50,000 signatures in just one day.
In response, acting party leader Kim Byung-ki said, "We will examine the possibility of raising the 1 billion won major shareholder standard, centering around the party's KOSPI 5,000 special committee and the tax normalization special committee."
In response, Jin Sung-jun met with reporters at the KINTEX in Goyang City, where the party convention was held, and said, "Since the plan has not been finalized, we should assess the situation in the stock market and make a decision." He also remarked, "I don't believe that the comments made by Mr. Kim have shaken the reform plan."