[2021 National Audit] Go Seung-beom "Stock Transfer Tax Issue... Will Consult with Ministry of Economy and Finance"

Financial Services Commission Chairman Ko Seung-beom attended the National Assembly's Public Administration and Security Committee's audit of the Financial Services Commission held at the National Assembly on the 6th and is reporting on his duties. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Ji-hwan] Ko Seung-beom, Chairman of the Financial Services Commission, announced on the 6th that he will discuss the issue of capital gains tax on stocks, which will be applied from 2023, with the Ministry of Economy and Finance.

On the same day, during the National Assembly's Financial Services Commission audit by the Political Affairs Committee, in response to People Power Party lawmaker Park Soo-young's question, "Is it necessary to impose capital gains tax on stocks?" Chairman Ko replied, "I agree with measures such as allowing loss offsetting or setting the transaction tax rate to 0%, but I will consult with the Ministry of Economy and Finance on the details."

The government plans to fully implement taxation on financial investment income starting in 2023. Previously, capital gains tax was imposed only on major shareholders, but going forward, individual investors who earn more than 50 million KRW annually in capital gains from stock investments will have to pay 20% tax on taxable income up to 300 million KRW and 25% on amounts exceeding 300 million KRW.

Lawmaker Park expressed concerns, saying, "There is a lot of worry that imposing both transaction tax and capital gains tax on stocks will reduce stock trading volume," and added, "If stock trading decreases due to capital gains tax, there is also a concern that the funds will flow into the real estate market, causing housing prices to rise further."

Regarding the basic deduction amount set at 50 million KRW, he pointed out, "Young people are very concerned that the amount will be set at 50 million KRW when the system is introduced but lowered to 10 million KRW afterward."

In response, Chairman Ko said, "The issue of asset formation for young people is very important, and the Financial Services Commission also considers it significant," adding, "We will also discuss the basic deduction issue with the Ministry of Economy and Finance."

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