The government and the ruling party discussed the controversy over the capital gains tax on stock transfers for major shareholders in a high-level party-government meeting, but did not reach a conclusion. Regarding the U.S.-Korea tariff negotiations, they decided to support policies and budgets to mitigate damage to vulnerable industries.
Park Soo-hyun, the spokesperson for the Democratic Party of Korea, held a briefing at the National Assembly on the afternoon of the 10th and noted, "There was a discussion regarding the capital gains tax on stock transfers," but added, "We decided to reflect further while watching future trends." This is interpreted to mean that they will monitor the stock market's reactions and decide whether to strengthen the capital gains tax criteria for major shareholders.
The spokesperson added, "Following the directives from the party leadership, we are extensively gathering opinions centered around the policy committee. The policy committee has communicated the opinions, and they were submitted as agenda items today (the 10th)," but noted, "The discussions did not reach a level to draw any conclusions."
The government announced in the tax reform plan released on the 31st of last month that it would introduce new criteria for major shareholders, imposing capital gains tax on stock investors with holdings exceeding 1 billion won. Previously, the Yoon Suk-yeol administration relaxed the major shareholder criteria to 5 billion won in 2023, but now intends to strengthen the criteria again.
With the announcement of the tax reform plan, concerns have grown that the expanded tax base will spur large-scale selling by so-called "big hands" in the stock market. As concerns about strengthening the capital gains tax criteria for major shareholders arise within and outside the party, Democratic Party leader Jeong Cheong-rae directed that opinions be gathered centered around Han Jeong-ae, the party's policy committee chair.
On this day, the party and government reviewed follow-up measures related to the U.S.-Korea tariff negotiations during the high-level party-government meeting. As part of the follow-up measures, plans to strengthen support for vulnerable sectors and small parts corporations were discussed. They also agreed to support the creation of infrastructure related to the Asia-Pacific Economic Cooperation (APEC) summit to be held in Gyeongju in October.
The spokesperson said, "The party has closely requested that the government consult on the timing for reducing automobile tariffs with the U.S. side, as well as the creation of a package to generate market opportunities for our corporations in the U.S.," and added, "The party and government will simultaneously implement policies and budget support related to alleviating difficulties faced by vulnerable sectors and small parts corporations, as well as mitigating tariff damage."
It has been reported that discussions regarding the special pardon for Liberation Day, which will be deliberated and voted on at the temporary Cabinet meeting on the 11th, did not take place during the high-level party-government meeting.