Seoul: 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.

According to Yonhap News Agency, Lee added that the DP has “agreed on the government and the ruling People Power Party’s push” to scrap the tax. The People Power Party (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.

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 th
e 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.