Korea's opposition party agrees to scrap plan for financial investment income tax

Lee Jae-myung the leader of the Democratic Party of Korea center speaks during a Supreme Council meeting held at the National Assembly in Seoul on Nov 4 Yonhap — Lee Jae-myung, the leader of the Democratic Party of Korea (center), speaks during a Supreme Council meeting held at the National Assembly in Seoul, on Nov. 4, 2024. Yonhap

SEOUL, November 4 (AJP) - South Korea's main opposition Democratic Party (DP) agreed Monday to scrap a plan to introduce a new tax on financial investment income, citing challenges in the country’s stock market.

"We have agreed to support the government's push to withdraw the financial investment income tax," DP leader Lee Jae-myung said at the party’s Supreme Council meeting.

The new tax was originally scheduled to be implemented next year, imposing a 20 percent tax on earnings over 50 million won (US$36,480) from stock investments and a 25 percent tax on profits over 300 million won.

Lee added that the current stock market is facing significant difficulties, making it challenging to implement the new tax.

"We considered raising the exemption limit for the tax from 50 million won to 100 million won, among other measures, but concluded that this would not resolve the structural risks and vulnerabilities of the current stock market," Lee said.

Initially, the party had supported implementing the financial investment income tax as planned, starting in 2025.

Kim Joo-heon jhkim123@ajunews.com

Korea's opposition party agrees to scrap plan for financial investment income tax

Related