Is Year-End Stock Dumping to Avoid Capital Gains Tax Overstated?... 3,000 Major Players Pay Capital Gains Tax Every Year
Cha Kyugeun of the National Innovation Party:
3,359 Paid an Average of 662.9 Million Won in Capital Gains Tax
About 3,000 Consistently Choose to Pay Taxes Each Year
It has been found that a significant number of major players in the stock market choose to pay capital gains tax rather than sell their shares at the end of the year to avoid being designated as major shareholders. Analysts suggest that concerns about a massive sell-off by large investors at the end of the year to avoid stock transfer taxes are somewhat exaggerated.
According to data released by Assemblyman Cha Kyugeun of the National Innovation Party on August 26, 2025, the number of individuals who reported capital gains tax on listed stocks in 2023 was 3,359. Their total capital gains amounted to approximately 946.77 billion won, with an average of 2.8186 billion won per person. The average determined tax amount paid by these individuals was about 662.9 million won.
Assemblyman Cha’s office explained, “Among so-called 'big players' in the capital market, some choose to pay taxes rather than avoid being designated as major shareholders,” adding, “This is because the various costs incurred in the process of avoiding major shareholder designation are considered to be even greater.”
According to the National Tax Service’s analysis, except for the asset market boom years of 2021 and 2022, about 3,000 people have consistently paid capital gains tax each year. In 2019, their average capital gain was 1.4551 billion won, but this increased to 2.8186 billion won in 2023.
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Don't Throw Away Coffee Grounds" Transformed into 'High-Grade Fuel' in Just 90 Seconds [Reading Science]
- "Am I Really in the Top 30%?" and "Worried About My Girlfriend in the Bottom 70%"... Buzz Over High Oil Price Relief Fund
- The Unexpected Story of an American Man Who Won the Lottery 18 Times in 29 Years: "My Real Luck Is My Wife"
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
Assemblyman Cha pointed out, “Some claim that large investors dump their shares at the end of every year to avoid major shareholder designation, but it is difficult to generalize this,” highlighting the issue of costs associated with avoiding major shareholder status. He explained that the average stock transfer amount per person is 3.949 billion won, resulting in a transaction tax (0.2%) of 7.89 million won alone, in addition to opportunity costs from not being able to sell at the desired time and the costs incurred when buying back shares.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
