KOFIA "Financial Investment Tax Hurts Investor Sentiment... Urges Postponement"

Korea Financial Investment Association.

[Asia Economy Reporter Hwang Yoon-joo] The Korea Financial Investment Association has urged a prompt decision to postpone the introduction of the Financial Investment Income Tax (Fin-Income Tax), which is currently being discussed in the National Assembly.

On the 11th, the Korea Financial Investment Association and 31 securities firms issued a joint statement calling for a postponement of the Fin-Income Tax implementation and expressed this position to the National Assembly and political circles.

They pointed out that a major tax reform such as the introduction of the Financial Investment Income Tax amid uncertain capital market conditions could significantly affect the investment sentiment of all investors.

In the statement, they said, "If the Fin-Income Tax is fully implemented in about 20 days without a clear decision on its introduction so far, it could result in very low predictability and tax acceptance among individual investors who are taxpayers."

They added, "If the implementation is forced without sufficient preparation such as guiding investors who are customers of securities companies about the new tax system and conducting adequate test operations of related IT systems for its introduction, various operational issues and confusion are expected."

They also urged, "The Korea Financial Investment Association and its member companies jointly call on the National Assembly to actively engage in tax reform to raise the major shareholder threshold to resolve the year-end 'sell-off concentration' phenomenon caused by the recurring major shareholder taxation every year."

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