Ruling Party Urges Opposition to Cooperate in Parliament Discussions Amid Risk of Financial Investment Tax Implementation in One Month Due to Opposition's Postponement Rejection

Joo Ho-young, floor leader of the People Power Party, is attending the party strategy meeting held at the National Assembly on the 15th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy reporters Lee Ji-eun and Kwon Hyun-ji] While the Democratic Party of Korea opposes the government's plan to postpone the financial investment income tax (Geumtu Tax) citing it as a "tax cut for the wealthy," the People Power Party raised their voices urging cooperation in parliamentary discussions, warning of a "Geumtu Tax implementation crisis in a month."

Song Eon-seok, the senior deputy floor leader, strongly urged cooperation for the operation of the National Assembly's Strategy Meeting during his opening remarks on the morning of the 15th, saying, "The Democratic Party is opposing on the grounds of 'tax cuts for the wealthy,' putting tax reform at risk of collapse."

Song criticized, "(The government) submitted a bill to postpone the introduction of the Geumtu Tax for two more years until 2025, but the bill has not yet passed due to opposition from the Democratic Party," adding, "(The Democratic Party) claims that people earning over 50 million won are the top 1% and that there is no impact on the stock market, but this stems from a lack of understanding of the stock market."

He pointed out, "This means that all investors become potential taxpayers, and if 'Wanggaemi' (high-net-worth individual investors) are taxed, there is a concern they might leave the stock market," adding, "The general perception among investors is that the entire stock market will be affected, and small investors will inevitably suffer."

Ryu Seong-geol, the ruling party's floor leader on the National Assembly's Planning and Finance Committee, which is discussing the tax law amendment bill including the Geumtu Tax, also said, "The Planning and Finance Committee's bill subcommittee and the budget review subcommittee have not yet been formed," and strongly urged the Democratic Party to cooperate so that the Planning and Finance subcommittee can be formed and operated today or tomorrow, considering the tight review schedule.

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