Division into debate on enforcement after improvement vs. deferral team
Leadership: “Not planning to prolong the process”
Rep. Lim Kwang-hyun proposes amendment to deduct 1 billion won in stock
Intention to defer indicated by Lee Jae-myung waiting in the wings
Pressure from the opposition to end rather than vacillate
Likely to lead to confusion until the end of the year, when it is set to be enacted,
Han-to-yeon, anti-gold tax candlelight vigil – The Korea Stock Investors Federation, a group of individual investors, is holding a candlelight vigil against financial investment income tax in front of Seoul Station on the 21st. September 21, 2024. Yonhap,
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, ‘As the Democratic Party’s debate on the financial investment income tax (FIT) is held on the 24th, within the party, there is growing momentum for a swift decision between ‘enforcement after improvement’ and ‘deferral’ in consideration of market uncertainties. However, regardless of the Democratic Party’s choice, there are concerns that confusion may persist until the end of the year when it is set to be enacted due to the clash with the government and the ruling party’s demands to ‘abolish’ the FIT.’,
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, ‘A key figure in the Democratic Party leadership stated in a phone call on the 22nd that this debate would be a determining factor and that they plan to introduce a bill following the direction set during the debate, which will then go through the party’s policy council for consensus. They also mentioned that they do not plan to prolong the process. In this debate, 10 former Democratic Party lawmakers will be split into two groups of five, ‘deferral team’ and ‘enforcement team,’ to carry out discussions.’,
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, ‘Both teams have already entered the pre-game. The ‘enforcement team,’ which plans to implement the FIT on January 1 next year as scheduled, has proposed six ‘FIT improvement package laws’ such as amendments to the income tax law to address side effects. The bill introduced by Rep. Lim Kwang-hyun on the 20th includes raising the basic deduction for the 50 million won FIT to 100 million won and extending the period for carrying forward losses from 5 years to 10 years.’,
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, ‘However, the provision allowing direct investment in foreign stocks through Individual Comprehensive Asset Management Accounts (ISA) was omitted, likely in consideration of public criticism that it would abandon the domestic market. In response, Rep. Lim stated, “Allowing direct investment in foreign stocks through ISA accounts would expand opportunities for middle-class asset management,” and added that “it can be further discussed during the bill deliberation process in the future.”‘,
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, ‘Speculation has also emerged that Lee Jae-myung, who first introduced a crack into the Democratic Party’s stance on the FIT, is leaning towards a ‘deferral’ approach. Kim Min-seok, a key figure in the pro-Lee faction, also stated in a statement on the 19th that “the FIT implementation should be deferred three years.” However, Rep. Min Byeong-deok, who is the preparation committee chairman for the debate, stated, “Individuals can express their opinions, but it cannot be said that decisions are made based on that.”‘,
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, ‘The People Power Party, which advocates for the abolition of the FIT, continues to pressure the Democratic Party. The party’s spokesman Park Sang-soo stated in a commentary the previous day, “The FIT issue is a clear example of the materialistic approach emphasized by this party leader,” and expressed hope for a prompt decision on the abolition of the FIT, something that the 14 million individual investors are eagerly awaiting.’,
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, ‘However, since the possibility of the Democratic Party adopting the ruling party’s position of abolishing the FIT is practically non-existent, a challenge remains in coordinating between the ruling and opposition parties. A Democratic Party policy official stated, “On the timetable (of implementation next year), discussions at the National Assembly’s Planning and Budget Committee must be concluded by the end of November before the bill can be submitted to the plenary session in December,” and predicted that intense discussions will take place until then.\n’