Handonghun urges Democratic Party to hold "Financial Investment Tax Debate" together after cancellation

Han Dong-hoon, leader of the People Power Party, proposed on the 6th that "let's hold the financial investment income tax (금투세) discussion with our People Power Party. That is a discussion for people's livelihood and politics for the people," addressing the Democratic Party of Korea, which abruptly canceled the debate on the financial investment income tax.

Han Ji-a, chief spokesperson for the People Power Party, conveyed this proposal from Han during a press conference held at the National Assembly communication center in the afternoon. The Democratic Party abruptly canceled the "Discussion on Seeking Improvement Measures for the Financial Investment Income Tax Desired by the People," which was scheduled for the 7th.

Inside and outside the political circles, there is an interpretation that the Democratic Party, which has maintained the position that the financial investment income tax should be implemented as planned, made this decision in consideration of public opinion that has become sensitive to the financial investment income tax due to the recent stock market crash.

Chief Spokesperson Han emphasized, "There is a 'golden time' for policies. Now is the right time for the ruling and opposition parties to openly discuss the financial investment income tax policy together," adding, "The People Power Party will start first. We expect the Democratic Party's progressive and bipartisan cooperation solely for the 'people's livelihood.'

When a reporter repeatedly asked if this meant holding the financial investment income tax discussion together with the Democratic Party, Chief Spokesperson Han replied, "The National Assembly should be a place for people's livelihood, not a battleground for political strife," and added, "Since it is the party's position and role to resolve this politically, if the Democratic Party joins the people's livelihood discussion we want to hold, it would truly be a good direction for the public to see."

[Image source=Yonhap News]

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The People Power Party leadership is pressuring the Democratic Party, which insists on maintaining the financial investment income tax, as the domestic stock market plummets due to factors such as the U.S. economic recession and the unwinding of the yen carry trade. This is because the financial investment income tax is expected to further shrink investment in the domestic stock market.

At the party-government council held at the National Assembly in the morning, Han criticized, "We need to establish a bipartisan stance on abolishing the financial investment income tax. If we forcibly implement the financial investment income tax, which can create a momentum for a significant stock price drop only for us amid the unstable global stock markets, we will create a perfect storm and enter that situation in difficult times."

Choo Kyung-ho, floor leader, also pointed out at the floor countermeasure meeting held at the National Assembly that day, "The financial investment income tax will be implemented in five months if left as is. A public petition demanding the abolition of the financial investment income tax has gained over 50,000 signatures," adding, "Considering the recent increased volatility in the stock market, discussions on abolishing the financial investment income tax can no longer be delayed."

Kim Sang-hoon, chairman of the Policy Committee, explained after the party-government council briefing, "There are forecasts that the U.S. economy is slowing down, the earnings of big tech companies are declining, and with Japan's interest rate hikes, capital outflows from the U.S. market are continuing, which is expected to affect the domestic market as well," adding, "The government side expressed that abolishing the financial investment income tax is an urgent task for us, and we will strengthen measures to reinforce the demand base of the stock market."

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