Seoul: Finance Minister Choi Sang-mok on Tuesday reiterated the need to scrap a financial investment income tax to ease market uncertainties. Choi made the call during a parliamentary audit into his ministry, emphasizing that postponing a decision on the new tax scheme “equals deferring uncertainties.”
According to Yonhap News Agency, under the investment income tax scheme, capital gains over 50 million won (US$36,137) from stock investments would be subject to a 20 percent tax, while earnings exceeding 300 million won would be taxed at 25 percent. Originally set to take effect in 2023, the implementation has been delayed until January 2025.
The government and the ruling People Power Party are advocating for the abolition of the tax to stimulate the stock market. Meanwhile, the main opposition Democratic Party is considering further postponement. Choi stated, “It is a right choice to scrap the investment income tax. Some have called for further delay, but issues they presented as reasons for the option (pos
tponement) cannot be addressed in a couple of years.”
Choi further added that it is necessary to discuss ways to reform the overall taxation system on financial assets after scrapping the planned tax scheme.