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| ▲ Lee Jae-myung (C), the leader of the main opposition Democratic Party, speaks during a supreme council meeting at the National Assembly on Nov. 4, 2024. (Yonhap) |
(LEAD) DP leader-investment tax
(LEAD) DP leader agrees on scrapping financial investment income tax
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SEOUL, Nov. 4 (Yonhap) -- Main opposition Democratic Party (DP) leader Lee Jae-myung said Monday he has agreed on a push by the ruling party and government to abolish the planned financial investment income tax.
"It is right to push ahead with (the implementation of the financial investment income tax) according to our principles and values even if it involves difficulties, but the current stock market is in a very challenging place," Lee told the party's supreme council meeting.
He added that the DP has "agreed on the government and the ruling People Power Party (PPP)'s push" to scrap the tax.
The PPP has been urging the DP to agree on the abolition of the tax, but some opposition lawmakers have insisted the financial investment income tax should go into effect as planned, expressing concerns over a potential decrease in tax revenues.
"We welcome the DP's decision to join us, though belatedly, in abolishing the financial investment income tax," PPP leader Han Dong-hoon told reporters.
In a statement, PPP floor leader Choo Kyung-ho said the party will immediately begin negotiations with the opposition to pass a related bill during a parliamentary plenary session this month.
The financial investment income tax was originally set to be introduced last year but was delayed by two years until the start of 2025.
Under the new scheme, capital gains of over 50 million won (US$38,000) from stock investments will be subject to a 20 percent tax, while earnings exceeding 300 million won will be subject to a 25 percent tax.
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