seoul: Main opposition Democratic Party (DP) leader Lee Jae-myung announced on Monday that he has agreed with 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 stated during the party’s supreme council meeting. He further mentioned that the DP has “agreed on the government and the ruling People Power Party (PPP)’s push” to discard the tax.

According to Yonhap News Agency, the PPP has been urging the DP to support the abolition of the tax. However, some opposition lawmakers have expressed concerns over the potential decrease in tax revenues, insisting that the financial investment income tax should be implemented as planned. PPP leader Han Dong-hoon expressed approval of the DP’s decision, albeit delayed, stating, “We welcome the DP’s decision t
o join us, though belatedly, in abolishing the financial investment income tax.”

In a statement by PPP floor leader Choo Kyung-ho, the party confirmed that it will commence negotiations with the opposition to pass a related bill during a parliamentary plenary session within the month. The financial investment income tax, initially set to be introduced last year, had been postponed to the beginning of 2025. The proposed tax scheme would have imposed a 20 percent tax on capital gains exceeding 50 million won (approximately US$38,000) from stock investments, with earnings over 300 million won subject to a 25 percent tax.