Choo Kyung-ho Rejects Opposition's Mediation Proposal on Financial Investment Tax: "Too Early to Lower Securities Transaction Tax"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is responding to questions from lawmakers at the plenary meeting of the Planning and Finance Committee at the National Assembly on the morning of the 18th. 2022.11.18 Photo by Yonhap News

[Asia Economy Sejong=Reporter Son Seon-hee] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho rejected the Democratic Party's mediation proposal to lower the securities transaction tax to 0.15% as a precondition for postponing the implementation of the financial investment income tax by two years.

On the 18th, at the plenary meeting of the National Assembly's Planning and Finance Committee, Deputy Prime Minister Choo said regarding the opposition party's proposal, "Lowering the securities transaction tax to 0.15% is premature," and added, "I cannot agree."

At the meeting, Shin Dong-geun, a Democratic Party lawmaker serving as the committee's secretary, proposed withdrawing the government's plan to ease the major shareholder threshold for stock capital gains tax (from 1 billion KRW to 10 billion KRW) in exchange for postponing the financial investment income tax for two years, and lowering the securities transaction tax rate from 0.20% to 0.15% starting next year.

The Democratic Party suggested that if these two conditions are accepted, the implementation of the financial investment income tax could be postponed for two years.

However, Deputy Prime Minister Choo reiterated, "The government's plan is to postpone the implementation of the financial investment income tax for two years and raise the stock capital gains tax threshold to 10 billion KRW," and expressed his rejection by stating, "Currently, the stock market uncertainty is too great and fragile, so I believe it is not appropriate to introduce a new tax system."

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