Han Jeong-ae, the chair of the Democratic Party of Korea's Policy Committee, conveyed the opinion that the criteria for major shareholders subject to capital gains tax on stock transfers should remain as the current 'holding more than 5 billion won per stock'. She noted on the 12th, 'The government should seriously consider this.'
On this day, the Policy Committee chair appeared on CBS Radio's 'Kim Hyun-jung's News Show' and, when asked by the host, 'Is there a high possibility that the ruling party's proposal will be accepted as the final agenda?' she replied, 'While the government's position is important as it is an enforcement decree, the government is not unaware of the party's concerns.'
The Ministry of Economy and Finance announced last month a tax reform plan to change the criteria for the capital gains tax for major shareholders from '5 billion won to 1 billion won.' As the backlash from small investors intensified, the Democratic Party conveyed its stance to the government during a high-level party-government meeting last weekend to maintain the current major shareholder criteria of '5 billion won.' The government stated it would 'observe the situation a bit longer before making a decision,' indicating it would deliberate on the matter, leading to a prediction that the ruling party's Policy Committee chair would likely accept the Democratic Party's proposal.
The Policy Committee chair remarked, 'Not touching the major shareholder standard can send a clear message to those contemplating whether to invest in stocks.' She indicated that consistent messaging is crucial from a policy perspective to direct capital flow into the financial market. It is reported that Democratic Party leader Jeong Cheong-rae also agreed.
She emphasized that the positions between the party and government should be adjusted finally with the aim of reaching a conclusion soon. The Policy Committee chair stated, 'Although we have not set a date, we discussed the issue in this month's high-level party-government consultation and agreed to organize our position before the next high-level party-government meeting.'
Meanwhile, the Policy Committee chair commented on the previous day that President Lee Jae-myung conducted special pardons for figures within the ruling party, including former Justice Minister Cho Kuk and former lawmaker Yoon Mi-hyang, saying, 'They were almost slaughtered by the knives of the political prosecutors.' She added, 'I think there was a decision to ensure that such things should not happen to those who claimed to have suffered from prosecutor power.'
In particular, regarding former lawmaker Yoon, she stated, 'The reason for the guilty verdict was a violation of the Political Fund Act, but logically, it doesn't make sense that a personal embezzlement occurred. There is a sense that such an event is (unfair). I believe this pardon may be a part of correcting what was demonized by Prosecutor Yoon Suk-yeol.'