Choo Kyung-ho "Concerns Over the Sincerity of the Democratic Party's 0.15% Securities Transaction Tax Compromise Proposal"

Concerns Over Decreased Tax Revenue Raise Questions About Proposals to Lower Transaction Taxes
Opposition Hopes for Progressive Review... No Change in Government Stance

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering a greeting at the '60th Anniversary Commemorative Meeting of the Five-Year Economic Development Plan' held on the 21st at the Global Knowledge Cooperation Complex in Dongdaemun-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho emphasized that "there is no change in the government's position" regarding the opposition Democratic Party's resistance to the government's plan to postpone the implementation of the financial investment income tax (금투세, Geumtu Tax) for two years and to abolish the comprehensive real estate tax (종부세, Jongbu Tax) heavy taxation on multiple homeowners, adding, "We hope the opposition party will consider this proactively."

Deputy Prime Minister Choo made these remarks on the 21st after a commemorative meeting marking the 60th anniversary of the Five-Year Economic Development Plan held at the Hongneung Global Knowledge Cooperation Complex in Seoul. When asked if there was still no Plan B regarding the tax reform proposal, he said, "Since the proposal was made after careful consideration, we will actively persuade and seek understanding of the government's position," adding, "We will strive to have it processed by the legal deadline for the budget bill passage on December 2."

Regarding the Democratic Party's proposal to postpone the implementation of the Geumtu Tax for two years if the securities transaction tax is further reduced to 0.15% and the major shareholder threshold for capital gains tax on stocks is raised, he reaffirmed the government's stance that it "still cannot accept" the proposal. He said, "The government has already announced a plan to reduce the securities transaction tax from 0.23% to 0.20%," and expressed concern, "It is questionable whether the opposition is genuinely and proactively agreeing to the postponement of the Geumtu Tax while proposing to lower it further to 0.15%." He added, "It is also puzzling that the Democratic Party, which has always criticized the government's tax reform plan due to concerns about revenue loss, suddenly proposes a reduction in the transaction tax."

On the abolition of the heavy taxation on multiple homeowners under the Jongbu Tax, he emphasized, "No country in the world imposes punitive taxes based on the number of houses owned," adding, "Given the already increased tax burden due to the rise in official property prices and tax rates, and the recent decline in housing prices, maintaining the heavy taxation system is inappropriate." He continued, "Policies introduced when the real estate market was overheated should naturally be abolished and normalized," and said, "Not only is the system itself unjustifiable, but the market conditions at the time of its introduction have also significantly changed."

Deputy Prime Minister for Economy Choo Kyung-ho, former Deputy Prime Minister for Economy Kang Kyung-sik, and former KDI President Ahn Seung-chul are cutting a commemorative cake at the 60th anniversary meeting of the Five-Year Economic Development Plan held on the 21st at the Global Knowledge Cooperation Complex in Seongbuk-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Meanwhile, at the meeting, Deputy Prime Minister Choo said he received advice from former Deputy Prime Ministers and Ministers of Economy and Finance, as well as the President of the Korea Development Institute (KDI), emphasizing the importance of dialogue with the political sphere. He said, "Since the positions of the political sphere and the National Assembly are very important in resolving all national issues and economic problems, it is crucial to actively seek understanding and gain consensus," adding, "Although critical views of the political sphere were also expressed, we intend to seek cooperation to have the government's proposal processed as originally planned."

Earlier, in his opening remarks, Deputy Prime Minister Choo expressed a sense of crisis, stating, "While the international economic order is rapidly changing due to the global supply chain restructuring, intensified technological hegemony competition, and emerging new economic and trade issues such as carbon neutrality, domestically, potential growth is rapidly declining due to worsening low birthrate and aging population problems, excessive regulations dampening private sector vitality, and delays in improving economic fundamentals."

He said, "Although the real economy is still in a relatively good state centered on growth and employment, it is highly likely that difficult times will continue until the first half of next year due to the global economic slowdown and China's lockdown policies," adding, "Therefore, the government is making efforts with extraordinary determination to overcome the current crisis and fundamentally improve the economic structure."

The event was attended by about 50 people, including Deputy Prime Minister Choo, former Deputy Prime Ministers and Ministers, former KDI Presidents, Choi Sang-dae, the 2nd Vice Minister of Economy and Finance, and Ko Young-sun, Acting President of KDI. It was jointly organized by the Association of Former Finance Officials, the Association of Former Ministers, the Ministry of Economy and Finance, and KDI to commemorate the 60th anniversary of the implementation of the Five-Year Economic Development Plan, which began in 1962.

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