Yoon says he will push to scrap financial investment income tax

President Yoon Suk Yeol said Tuesday he will push to scrap a new tax scheme to help promote investment in the country’s stock market.

Yoon made the remark during a ceremony marking the first trading day of the year, referring to the financial investment income tax, whose implementation has been delayed by two years until 2025.

Under the new scheme, capital gains of over 50 million won (US$38,000) from stock investments will be subject to a 20 percent tax, while earnings exceeding 300 million won will be subject to a 25 percent tax.

“Moving past the old debate about tax cuts for the rich, I will push to abolish the financial investment income tax, which is set to be introduced next year, to ensure the long-term co-prosperity of our people, investors and our stock markets,” he said during the ceremony at the Seoul office building of the Korea Exchange, the country’s bourse operator.

Yoon also said the country’s stock markets are undervalued and do not match the global competitiveness of its companies.

“I will boldly abolish capital market regulations that do not conform with global standards during my term and resolve the ‘Korea discount’ to the level of global stock markets,” he said, referring to perceptions that South Korean stocks are undervalued. “I will make sure institutional problems do not prevent a proper assessment of our stock markets.”

Yoon noted the number of retail investors in the country has increased rapidly, surpassing 14 million last year, and stressed the importance of vitalizing the financial investment sector in order to prevent people from getting stuck in a given social class.

“Stock markets are a forum for co-prosperity where the people and businesses grow together,” he said. “It is a ladder of opportunity that helps the people accumulate wealth.”

The ceremony was attended by around 200 people from the financial sector, government, ruling party and the presidential office.

Later in the day, Yoon also attended a gathering for the new year with hundreds of business leaders and young entrepreneurs at the office building of the Korea Federation of SMEs.

He again pledged the government’s best efforts to improve the public’s livelihoods and ease the financial burdens of small business owners and the self-employed.