Major Shareholder Transfer Tax Threshold Raised to '5 Billion Won'... Kwon Seong-dong "Welcomes Fulfillment of Presidential Pledge"

The government’s decision to raise the threshold for major shareholders subject to capital gains tax on stock transfers from the current 1 billion KRW to 5 billion KRW was warmly welcomed by Kwon Seong-dong, a member of the People Power Party, who said it is "a great welcome as it reflects the fulfillment of the presidential election pledge."

On the 21st, Kwon stated on his social media (SNS), "It is true that the government has shown policy confusion regarding the easing of the stock transfer tax threshold and illegal short selling. However, fortunately, the direction has been corrected, and the presidential election pledge is being fulfilled," he said.

Kwon Seong-dong, a member of the People Power Party, is questioning during the National Assembly Public Administration and Security Committee's audit of Seoul City Hall held at Seoul City Hall on the 16th. Photo by Kim Hyun-min kimhyun81@

The Ministry of Economy and Finance announced on the morning of the same day that it would revise the Enforcement Decree of the Income Tax Act to raise the stockholding amount subject to capital gains tax for major shareholders from 1 billion KRW to 5 billion KRW per stock. There have been criticisms that the threshold for major shareholders’ capital gains tax was too low, leading to major shareholders selling stocks at the end of each year to avoid the tax base.

Kwon pointed out, "Politics has the duty to provide a stable foundation for the public’s asset formation," adding, "The paradigm of asset accumulation is shifting from the labor market and real estate market to the stock market. The fact that there are already over 14 million stock investors proves this."

He continued, "What the government must do now is to abolish unnecessary regulations that reduce the vitality of the stock market and, at the same time, strictly crack down on acts that disrupt the market," adding, "With the general election coming next year, both ruling and opposition parties are showing chaotic behavior. At times like this, politicians must stick to the basics. Realizing the values and policies proposed by political parties, keeping promises, and building public trust is the very foundation of being a politician."

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