Ruling Party Alarmed by Stock Market Plunge, Reconsiders Strengthening Stock Transfer Tax

[Financial News] The Democratic Party of Korea announced on the 1st that it would reconsider strengthening the major shareholder standard for stock transfer income tax. This leaves room for reconsideration as concerns have been raised that the stock market has declined due to the tax reform plan.
Kim Byung-gi, acting representative and floor leader of the Democratic Party, said on social network services (SNS) that "there are many voices of concern and worry about the tax reform plan," and "we will examine the possibility of raising the 10 billion won major shareholder standard, focusing on the party's Special Committee on Tax Normalization and the KOSPI 5000 Special Committee."
The Lee Jae-myung government and the Democratic Party had previously announced that they would strengthen the major shareholder standard for stock transfer tax from the current 5 billion won to 1 billion won in next year's tax reform plan. As a result, there are many analyses that it has become a negative factor for the stock market, as concerns have been raised that big players in the stock market might withdraw their investments. The government and the ruling party have taken action as they have set the KOSPI index target at 5000.
The Democratic Party is expected to partially revise the tax reform plan through party-government consultations after discussions by the Tax Special Committee and the KOSPI 5000 Special Committee.
In this process, attention is drawn to whether the plan to increase the maximum corporate tax rate to 25%, which is also considered a negative factor for the stock market, will be adjusted. There is also interest in whether the issue of separate taxation of dividend income, which continues to have internal disagreements, will be resolved.
Acting leader Kim said, "We will focus on resolving investor distrust through close consultations between the party and the government."

uknow@fnnews.com Kim Yoon-ho Reporter