Democratic Party Pushes 'Korea Boost-Up' Party Policy Amid Financial Investment Tax Controversy

Taking Action to Revive the Stock Market

The Democratic Party of Korea held a policy forum on the Financial Investment Income Tax (FIIT) on the 24th and announced that it would adopt the "Korea Boost-Up 5 Major Projects" for revitalizing the stock market, including amendments to the Commercial Act, as the party's official stance.

In a statement released by the party's Policy Committee on the same day, it said, "The discussion reaffirmed the necessity of the FIIT system and the urgency of improving the stock market," adding, "We will promptly pursue the Korea Boost-Up 5 Major Projects, including the amendment to the Commercial Act."

The Korea Boost-Up 5 Major Projects were first proposed in July and include ▲expanding directors' fiduciary duties to shareholders ▲mandatory independent directors ▲separate election of auditors ▲activation of cumulative voting for large corporations ▲mandatory electronic shareholders' meetings and allowance of advisory shareholder proposals.

Members of the Korea Stock Investors Association, who advocate for the abolition of the financial investment income tax, are protesting on the 24th at the National Assembly, demanding to attend the Democratic Party of Korea's policy lawmakers' meeting discussion on financial investment income tax. Photo by Hyunmin Kim kimhyun81@

At the forum, the discussion focused more on the impact of the FIIT on the stock market rather than on whether to support or oppose the tax itself. On one side, concerns were raised that the implementation of the FIIT could lead to a decline in stock prices and negatively affect the market, while on the other side, it was argued that the tax could be implemented without significant shock.

The Policy Committee stated, "Those advocating for the postponement of the FIIT argue that measures to revitalize the stock market, such as amendments to the Commercial Act, should precede the tax implementation to minimize negative effects like stock price declines," adding, "Conversely, proponents of implementation believe that pursuing stock market revitalization measures simultaneously with the FIIT implementation is sufficient."

Based on the discussion results, the Policy Committee said, "A consensus has been formed on the necessity of the FIIT system and stock market value-up policies," and added, "We will strongly promote the Korea Boost-Up 5 Major Projects as bills at the party level."

Park Chan-dae, floor leader of the Democratic Party of Korea, is speaking at the Democratic Party of Korea policy members' meeting held at the National Assembly on the 24th under the theme "A Happy and Just Republic of Korea, How to Implement the Financial Investment Income Tax?" Photo by Kim Hyun-min kimhyun81@

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