Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho attends a personnel hearing held at the National Assembly on the morning of the 2nd. Parliamentary photojournalists
Choo Kyung-ho, a candidate for deputy prime minister and minister of Strategy and Finance, announced that he should suspend the implementation of the financial investment income tax, which is levied on gains on stock transfers.
At the National Assembly personnel hearing on the 2nd, Candidate Chu said, “It is necessary to defer the financial investment income tax for regarding two years and at the same time reduce the securities transaction tax while allowing good funds to flow into the stock market.”
From 2023 onwards, investors who have earned more than a certain amount (50 million won in stocks and 2.5 million won in other) through financial investments such as stocks, bonds, funds, and derivatives will have to pay a 20% tax (25% for more than 300 million won).
However, President-elect Yoon Seok-yeol has promised to abolish the stock transfer tax and maintain a certain level of the securities transaction tax in order to strengthen support for individual investors. As taxation begins next year, the revision of the relevant tax law should be completed within this year. Candidate Choo’s remarks are interpreted as the purpose of delaying the taxation of financial investment income tax and continuing the discussion.
Candidate Choo said, “We should review together,” even though it was pointed out that the imposition of the securities transaction tax and the special tax for rural areas (special tax for agriculture) did not meet the original purpose of the tax. Currently, the special agricultural tax is levied at 0.15% every time an investor trades stocks in the KOSPI, and an additional 20% special agricultural tax is also applied when the tax is imposed.
In addition, a special agricultural tax is levied on the individual consumption tax imposed on consumption such as golf courses, luxury furniture, and fur. The tax collected in this way is used for strengthening agricultural and fishery competitiveness and improving the environment. However, some point out that it is an anachronism to impose a special agricultural tax until recently, when stock investment became a means of financial technology for the majority of people, not the wealthy.
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