Presidential Office: "Abolishing the Financial Investment Tax Is Not a Tax Cut for the Wealthy... It Is for 14 Million Investors"

by Mun Jewon

Published 27 Aug.2024 15:16(KST)

[Image source=Yonhap News]

Seong Tae-yoon, Chief of Policy at the Presidential Office, stated on the 27th regarding the abolition of the Financial Investment Income Tax (Fintax) that "it is not a tax cut for the wealthy, but for about 14 million ordinary citizen investors."

Seong attended the full meeting of the National Assembly's Steering Committee in the afternoon and made these remarks in response to a related question from Kang Min-guk, a member of the People Power Party.

Seong emphasized, "If the Fintax is introduced, major investors may withdraw, which could negatively impact the stock market. There is a concern if those who have invested significantly in listed stocks withdraw. This damage could ultimately affect ordinary investors, so we are requesting the abolition of the Fintax."

He added, "Since Korea has a large portfolio composition in non-financial assets, guiding these into the capital market is necessary for the overall national economy."

Assemblyman Kang pointed out, "In the past, during the introduction of capital gains tax in Taiwan and Japan, there were significant impacts on the market such as stock price crashes and sharp declines in trading volume. Our direct competitors like Singapore, Hong Kong, and China only impose transaction taxes, so if only Korea imposes the Fintax, there are concerns about a decline in competitiveness."