Kim Byung-hwan, Deputy Minister of Economy and Finance, "Abolishing the Financial Investment Tax is a National Agenda"

The government is pushing for the abolition of the financial investment income tax. The financial investment income tax is levied on all investors who earn more than 50 million won from financial investments such as stocks, bonds, funds, and derivatives.

On the 2nd, Kim Byung-hwan, the 1st Vice Minister of Strategy and Finance, met with reporters at the Government Complex Sejong and stated regarding President Yoon Seok-yeol's announced plan to abolish the financial investment income tax, "The abolition of the financial investment income tax is a pledge and national agenda of the current administration," adding, "The Presidential Office and the Ministry of Strategy and Finance have held related consultations."

Earlier, President Yoon said in a congratulatory speech at the 'Securities and Derivatives Market Opening Ceremony' held at the Korea Exchange that "We will push for the abolition of the financial investment income tax scheduled to be introduced next year." During his presidential campaign, President Yoon pledged to abolish the financial investment income tax, which was highly demanded among 'Gaemi' (individual investors).

Originally scheduled to be implemented in 2023, the financial investment income tax was postponed for two years until 2025 by bipartisan agreement. The ruling and opposition parties agreed to maintain the major shareholder threshold for capital gains tax on listed stocks at 1 billion won or more and to gradually reduce the securities transaction tax.

Vice Minister Kim said, "If the financial investment income tax is implemented, a considerable number of small investors could be affected," adding, "It could be a negative factor and uncertainty for stock prices and the stock market. The system itself is a Korea discount."

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