Kwon Seong-dong and Jo Gyeong-tae Oppose Democratic Party's Forceful Financial Investment Tax... "Stop Imitating Clumsy Robin Hood" (Comprehensive)

[Asia Economy Reporter Naju-seok] Members of the People Power Party opposed the Democratic Party's plan to forcibly implement the financial investment income tax.

On the 13th, Kwon Seong-dong, a member of the People Power Party, stated on social media (SNS), "The Democratic Party is insisting on pushing through the financial investment income tax," adding, "If this continues, the tax on capital gains from stocks will inevitably be implemented in January next year. 14 million stock investors are trembling with anxiety."

Kwon Seong-dong, a member of the People Power Party, is asking a question to Kim Ui-cheol, president of the Korean Broadcasting System, during the National Assembly audit of the Korea Communications Commission held on the 17th. Photo by Yoon Dong-joo doso7@

He continued, "If the financial investment income tax is suddenly implemented next year, a stock market crash and economic crisis are as obvious as seeing fire," and "In 1989, Taiwan introduced a capital gains tax on stocks, but after the stock index plunged nearly 40% within a month, the tax was withdrawn."

Rep. Kwon said, "On the 8th, the Democratic Party said they would 'take responsibility for the aftermath of introducing the financial investment income tax,'" but questioned, "The Democratic Party has neither the will nor the ability to 'take responsibility.' What responsibility did they take for the failed income-led growth policy or the skyrocketing real estate prices despite dozens of countermeasures?"

He argued, "The most desirable distribution of wealth in a free market economy is for the people and companies to share growth," adding, "Stocks are especially a very good means of distributing wealth. People should be able to become shareholders and use stocks as a means to increase their assets." He described the financial investment income tax as a "'long-term investment prohibition law' that takes away about 25% of profits as soon as you open a long-term savings box," and said, "It breaks the virtuous cycle of wealth where citizens become shareholders of companies."

Rep. Kwon stated, "During the five years of the Moon Jae-in administration, due to wrong economic policies, the people lost their jobs and homes," and asked, "Now, are you trying to turn stocks into worthless scraps as well?"

He added, "When politics is done with fairy-tale delusions, only the people suffer," and said, "They are called not Robin Hood but 'Golbin Hood' (Empty-headed Hood)."

Rep. Cho Kyung-tae of the People Power Party also expressed opposition to the forced implementation of the financial investment income tax at a press conference.

At the press conference, Rep. Cho said, "I cannot help but ask if this is to put shackles on a panic market where stock prices have already fallen more than 30% and prevent its recovery," adding, "The financial investment income tax is a system that does not impose taxes on foreign and institutional investors but only on individual investors. In the end, it means imposing taxes solely on our citizens."

He continued, "The financial investment income tax can only send a negative message to the weakened stock market," and warned, "As a result, not only top investors but also retail investors may leave the market, causing the stock market itself to collapse."

[Image source=Yonhap News]

He said, "Regarding the argument that we should implement it because the U.S. and Japan have introduced it, if we equate countries with incomparable market size and fairness to the Korean market, the market will inevitably be ruined," adding, "Countries with market conditions similar to ours, such as Hong Kong, Singapore, New Zealand, China, and Taiwan, are aware of the risks of the financial investment income tax and have not introduced it."

Rep. Cho requested, "Please withdraw the imposition of the financial investment income tax planned to be enforced from next year," and said, "That is the right choice for the 14 million investors and the South Korean economy."

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