Seoul: The government has announced it will maintain the current threshold for capital gains tax on stock investments at 5 billion won (US$3.6 million), as confirmed by Finance Minister Koo Yun-cheol.
According to Yonhap News Agency, the Ministry of Economy and Finance had previously suggested reducing the threshold to 1 billion won in July, raising concerns among investors about a potential negative impact on market sentiment. Minister Koo stated that the decision to retain the existing threshold was influenced by the public's preferences and the ruling Democratic Party's appeal for initiatives to invigorate the capital market.
Minister Koo emphasized the government's deliberation since the tax reform plan's announcement in July. The focus was on balancing the need for tax normalization with the necessity to stimulate the capital market. This was discussed during a policy consultation meeting involving the government and the Democratic Party.
The Minister further assured that the government is committed to fostering company growth and bolstering the national economy by revitalizing the capital market and promoting productive finance. His remarks followed President Lee Jae Myung's statement at a press conference last week, indicating flexibility on the proposal if it adversely affected investor sentiment.