The Democratic Party of Korea is expected to gather opinions within the party regarding the 'capital gains tax major shareholder criteria' that has recently emerged as an internal debate, and to finalize its position soon. This decision comes out of concern that continued controversy could exacerbate instability in the stock market. After establishing the party's position, it seems likely to convey a revision proposal to the government.
Han Jeong-ae, the new policy chair of the Democratic Party, noted during a meeting of the National Assembly's policy committee held that morning, regarding the 'capital gains tax major shareholder criteria,' "I will listen to the people's voices concerning the tax reform proposal and will carefully examine it," adding, "I believe it is necessary to communicate our opinions to the government. I will do my best to ensure close communication with the government."
Earlier, Democratic Party leader Jeong Cheong-rae requested party members to refrain from public comments regarding the government's announced policy to strengthen the 'capital gains tax major shareholder criteria' amid divided opinions within the party. Instead, he directed a policy chair to organize the party's stance.
In response, the policy chair gathered opinions that afternoon focused on representatives Jeong Tae-ho, O Gi-hyung, Ahn Do-geol, and Lee So-young from the 'KOSPI 5000 Special Committee' and the 'Tax Normalization Special Committee.' It is reported that opinions were presented emphasizing that the major shareholder criteria for capital gains tax, being a matter of government implementation ordinance, require a final decision from the government.
The Democratic Party is expected to finalize its position as early as that day. Kim Hyun-jeong, the floor spokesperson, stated after the meeting that "we will quickly draw conclusions and announce them," emphasizing that there is a consensus on the need for a swift decision due to the government implementation ordinance. She added, "The longer controversies regarding this matter persist, the more uncertainty there will be in the stock market, so it would be better to reach conclusions quickly."
Previously, the Ministry of Economy and Finance announced in its tax reform proposal released on the 31st of last month that it plans to lower the capital gains tax major shareholder criteria from holding more than 5 billion won per stock to more than 1 billion won.
The Democratic Party is reported to be focusing on modifying this proposal. Kim, the floor spokesperson, stated, "There is no correlation between the major shareholder requirements and stock prices during the various changes. However, in 2010, both KOSPI and NASDAQ were at exactly 2,000 points, yet now, 15 years later, we have risen by 1.5 times while NASDAQ has exceeded 20,000 points," adding, "Since the Lee Jae-myung government and the Democratic Party have the goal of achieving KOSPI 5000, there are arguments that a reduction in the major shareholder capital gains tax is inconsistent with such a trend. This falls within the realm of prioritizing policy. "
A Democratic Party floor official stated, "Once the party's position is determined, we cannot make an unilateral announcement. We need to do so in a way that proposes to the President's Office."