The Democratic Party of Korea has officially conveyed its position to the government that the standard for large shareholders, which is subject to capital gains tax on stock transfers, should remain at 'holding over 5 billion won per item.'
Han Jeong-ae, chairperson of the Democratic Party's Policy Committee, met with reporters at the National Assembly on the morning of the 11th and said regarding the inquiry related to the standard for large shareholders made during the previous day's party-government meeting, "I presented the opinion that it would be better not to touch on this."
The Ministry of Economy and Finance announced a tax reform plan at the end of last month to lower the standard for large shareholders from '5 billion won to 1 billion won,' and there were divided opinions within the Democratic Party. Supporters argued that it was a normalization of reversing the 'tax cut for the wealthy' under the Yoon Suk-yeol administration, while opponents countered that it contradicts the goal of revitalizing the stock market aimed at 'KOSPI 5000.' Amid this atmosphere, the Democratic Party's Policy Committee conveyed the sentiment to the government that the standard for large shareholders should be 'maintained at 5 billion won.' However, the government stated, "We will watch the trends a little longer before making a decision," indicating that it would deliberate.
A policy committee chairperson explained, "Isn't the (government's tax reform plan) trying to change the flow of the capital market?" and added, "If we can attract investors other than those currently in the stock market, such as those investing in real estate, so that corporations can properly raise capital through the capital market, it will ultimately benefit the corporations as well."
He continued, "The result of the party-government consultations was that more discussions are needed, " stating, "We sufficiently conveyed the party's opinions, and since the opinions of the party and the government are not aligning, we need to have further discussions."
The policy committee chairperson plans to share the content of the party-government consultations with the party's 'KOSPI 5000 Special Committee' and the members of the Strategy and Finance Committee at the National Assembly, and to organize the issues surrounding the tax reform proposal. He added, "The announcement of next year's budget proposal is coming soon, so I can discuss it practically with the Ministry of Economy and Finance, and I think we should sort it out before the next party-government meeting regarding the tax reform proposal."