Choo Kyung-ho: "No Decision Yet on Easing Major Shareholder Criteria for Stock Transfer Tax... Agreement with Opposition Needed"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is attending the Cabinet meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 10th, having a conversation with Minister of the Interior and Safety Lee Sang-min. Photo by Jo Yong-jun jun21@

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 12th that no decision has been made yet regarding the relaxation of the major shareholder criteria.

On the same day, Deputy Prime Minister Choo appeared on KBS's 'Sunday Diagnosis Live' and said about the relaxation of the capital gains tax major shareholder criteria, "Consultation with the opposition party is necessary."

He explained, "Last year, it was agreed between the ruling and opposition parties to implement comprehensive taxation on financial investment income, but it was postponed for two years," adding, "There was an agreement between the ruling and opposition parties to maintain the major shareholder threshold of 1 billion KRW until next year."

He continued, "Currently, we are in the stage of comprehensively reviewing various market conditions," and added, "If there are changes, since there is an agreement with the opposition party, a consultation process is necessary."

Regarding future inflation trends, he said, "Recently, with all-around supply and demand efforts and weather returning somewhat to normal, agricultural product prices are generally declining," and predicted, "In November, the inflation rate is expected to be around 3.6%."

In response to criticism that the government's recent item-by-item price management resembles the revival of the 'Bread Officer' from the Lee Myung-bak administration, he said, "That seems to be somewhat exaggerated."

Deputy Prime Minister Choo explained, "Inflation cannot be stabilized by the government alone; cooperation from various sectors is needed," adding, "Through meetings with the industry, we seek cooperation by explaining that if prices are raised without special reasons or by riding the inflation wave, it will lead to reduced consumption and burdens."

Regarding the possibility of public utility fee increases, he stated, "The policy is to keep them frozen for the time being," and added, "Even if unavoidable factors for increases arise, we are requesting cooperation such as 'public institutions should absorb cost factors through management rationalization themselves' and 'please stagger the timing of increases'."

On officials’ strong criticism of interest profits in the banking sector, he said, "From the public’s perspective, it is like 'While we suffer from interest rate hikes, some are having a feast with interest income,'" and added, "The fact that the banking sector sometimes fights to raise their already high salaries is viewed very critically and unfavorably by the public."

He continued, "The financial sector is also deeply considering how to respond to the public’s sharp criticism in the spirit of win-win finance, and I expect that a good plan will be presented in the near future."

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