Democratic Party of Korea Chairman Jeong Cheong-rae requested members of the party to refrain from making public statements regarding the heated debate over the 'capital gains tax shareholder criteria' on the 4th. Instead, he stated that he would clarify the party's position in the near future.
At the end of the Supreme Council meeting held at the National Assembly that morning, Chairman Jeong added concluding remarks, saying, 'It's a somewhat sensitive issue, but as the party leader, I will set a direction.'
He noted, 'The controversy surrounding the stock capital gains tax is intense. It doesn't seem appropriate to publicly debate this matter within the party. From this point on, let's have thorough discussions in private, so I hope the members will refrain from making public statements on this issue.'
He then directed the new policy chair, Han Jeong-ae, saying, 'Please prepare and report Options A and B by today,' and added, 'We will clarify our stance and inform the public as soon as possible.'
Previously, the Ministry of Economy and Finance announced on the 31st of last month that it would lower the threshold for imposing the stock capital gains tax from holding over 5 billion won in stocks to over 1 billion won. This has sparked criticism primarily from individual investors, and as of 10 a.m. on the 4th, the number of signatures supporting the National Assembly's petition against lowering the capital gains tax threshold surpassed 110,000.
Amid this, as the debate over changing the stock capital gains tax shareholder criteria spread within the party, it appears they issued a 'directive to restrain the debate' due to concerns it could be seen as a discrepancy between the party and the government and create confusion in the stock market. It seems to reflect their determination not to replicate the chaotic situation last year regarding the 'deferment of the financial investment income tax' which led to internal disagreements.
So far, a total of 13 ruling party lawmakers, including Supreme Council member Lee Eon-joo and Representative Lee So-young, have publicly expressed concern about the government's tax reform plan. Representative Lee Yeon-hee suggested that discussions within the party should align the stock market tax reform plan with the national economic vision of a KOSPI of 5,000. In contrast, former policy chair Jin Seong-jun has maintained that lowering the shareholder criteria will not significantly impact the stock market.