Hwang Un-ha, the floor leader of the Homeland Innovation Party, stated, “The abolition of the Financial Investment Income Tax (FIT) is a step back from taxation principles.” All 12 members of the party are set to vote against it in the upcoming parliamentary session.
In a press briefing at the National Assembly on November 3, Hwang expressed regret over Lee Jae-myung, the leader of the Democratic Party of Korea, officially declaring the abolition of the FIT. Hwang pointed out that once the principle of taxation is compromised, it becomes extremely difficult to restore.
He acknowledged the current challenges faced by the Korean stock market and criticized the government’s and ruling party’s approach of using it for political warfare. Nonetheless, he questioned whether the Democratic Party responding in kind was the best course of action.
Hwang mentioned that the bill related to the abolition of the FIT is expected to be processed in the November plenary session through bipartisan agreement, but stated that all members of the Homeland Innovation Party plan to vote against it.
He added that history would judge whether this decision to abolish the FIT was a clever move or a strategic blunder. He stressed the importance of upholding taxation principles for the sake of the community.
The FIT, introduced in 2020, taxes financial investment profits exceeding certain thresholds (e.g., 50 million won in stocks). Although its implementation was postponed twice, it was set to take effect on January 1, 2025. However, with the decision to abolish the tax by the government, ruling party, and Democratic Party, its implementation is unlikely to proceed next year.