Kim Tae-nyeon "Strengthen Comprehensive Real Estate Tax, Lower Securities Transaction Tax" Hong Nam-ki "Tax-Neutral Tax Reform"

Kim Tae-nyeon, floor leader of the Democratic Party of Korea, is delivering opening remarks at the '2020 Tax Reform Bill Party-Government Consultation' held at the National Assembly on the 22nd. Photo by Yoon Dong-joo doso7@

[Asia Economy reporters Wondara and Jeon Jinyoung] The Democratic Party of Korea and the government are preparing a tax law amendment bill that strengthens the comprehensive real estate tax and capital gains tax while lowering the securities transaction tax. The plan is also expected to include measures to enhance tax benefits for new growth technology research and development (R&D), small business owners, and salaried workers.

Kim Tae-nyeon, the floor leader of the Democratic Party, said in his opening remarks at the 2020 tax law amendment party-government consultation held at the National Assembly on the morning of the 22nd, "The tax law amendment bill to be discussed today encompasses the contents included in various economic measures announced so far," adding, "The Democratic Party will maximize the values of fairness and efficiency in this tax law amendment process."

Regarding specific details, Floor Leader Kim said, "We will finalize the real estate tax reform plan aimed at stabilizing the housing market, including strengthening the comprehensive real estate tax and capital gains tax on multi-homeowners and corporations, in the July National Assembly session."

He continued, "We will also prepare reasonable measures for financial tax reform. To revitalize the housing market, we will lower the securities transaction tax," adding, "While imposing taxes on financial investment income, it is important to establish a tax system that sound individual investors can accept. We will significantly raise the basic deduction amount for capital gains tax on financial investment income."

He also said, "To support the Korean New Deal, we will increase the tax credit rate for new growth technology facilities and R&D investments," adding, "The party and government will closely cooperate to ensure that the tax system becomes a pillar of economic vitality and livelihood stability."

Cho Jung-sik, chairman of the Democratic Party’s Policy Committee, said, "To promote investment, it is necessary to expand the scope of investment tax credits and strengthen incentives for new industry investments such as the Korean New Deal," adding, "It is also necessary to expand tax support such as easing support requirements for returning companies to increase incentives for companies to return to Korea."

He continued, "To support income for salaried workers and activate consumption, it is necessary to expand credit card deduction benefits and extend the individual consumption tax reduction period," adding, "Measures to reduce the tax burden on small-scale business operators should also be prepared."

Regarding financial tax reform, he said, "We must be careful not to shrink the stock market or dampen the enthusiasm of individual investors. For example, in introducing capital gains tax on stocks, it is necessary to further expand the previously announced deduction limits and reasonably improve the carryover deduction period and withholding methods."

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Economy and Finance, said, "This tax reform plan was overall prepared with the aim of tax neutrality," adding, "Overall, we attempted to align with the trend by reinforcing tax support for consumption vitality and investment promotion, reforming the investment tax credit system, lowering the securities transaction tax, and introducing taxation on financial investment income."

He added, "Since the damage from the novel coronavirus infection (COVID-19) has been concentrated on vulnerable groups, low-income earners, and small and medium-sized enterprises, we strengthened tax support for these groups," adding, "We aimed to focus our capabilities on expanding the foundation of inclusion from a tax perspective. Revising the simplified tax system for surtaxes after 20 years is a representative example."

Meanwhile, the final tax law amendment bill coordinated at the party-government consultation on this day is scheduled to be announced at 2 p.m. at the Ministry of Economy and Finance.

This content was produced with the assistance of AI translation services.