The threshold for defining a large shareholder subject to capital gains tax on stock transfers appears likely to remain at the current "5 billion won." President Lee Jae-myung is expected to confirm this stance at a press conference marking the 100th day of his inauguration on the 11th.
According to political sources on the 10th, the presidential office is positively reviewing a plan to keep the large-shareholder requirement, which determines the threshold for imposing capital gains tax on stock transfers, at the current 5 billion won. The tax revision plan the Ministry of Economy and Finance announced last month included tightening the large-shareholder threshold to 1 billion won, but as stock investors pushed back, political circles began voicing support for keeping the status quo.
Since then, the government and the ruling party have deliberated at length over the large-shareholder threshold for the stock transfer capital gains tax. The ruling Democratic Party of Korea coalesced around keeping it at 5 billion won. A ruling party lawmaker said, "Within the party, there were many views in favor of keeping it at 5 billion won, but because the decision has to be made by the government, we refrained from stating a position so as not to appear to pressure the government."
The presidential office appears to have settled on keeping the large-shareholder threshold for the stock transfer capital gains tax at 5 billion won. Kim Yong-beom, the Presidential Chief of Staff for Policy, said at a Korea Broadcast Journalists Club invited forum the previous day, "It has become clear that the impact on the capital market is significant," adding, "The government is aware of that."
Kim said, "When President Lee had lunch with the opposition leader on the 8th, he spoke positively, saying he was 'reviewing the government's position,'" adding, "A final decision appears imminent."
President Lee is expected to confirm his position on the large-shareholder threshold for the stock transfer capital gains tax at a press conference on the 11th. He is likely to state that the current 5 billion won will be maintained.
Kang Hoon-sik, the presidential chief of staff, said regarding the large-shareholder threshold for the transfer tax, "I think you will ask about it at the meeting on the 11th, and I think President Lee Jae-myung will answer," adding, "We are gathering opinions."