Core Points - The South Korean government, led by President Lee Jae-myung, unexpectedly introduced a comprehensive tax increase plan just two months into his administration, which includes significant reductions in capital gains tax thresholds, increases in securities transaction tax, and a rise in the maximum corporate income tax rate [1][2] - The announcement has sparked strong public opposition, with a petition to withdraw the capital gains tax plan gathering over 120,000 signatures, far exceeding the 50,000 needed to submit the proposal for parliamentary review [1][3] - The tax reform is projected to increase the annual tax burden on households and businesses by 8.2 trillion KRW (approximately 5.9 billion USD) over the next five years, marking the largest increase in recent years [3] Tax Plan Details - The proposal aims to lower the capital gains tax threshold from the current 5 billion KRW to 1 billion KRW (approximately 714,000 USD) [2] - The securities transaction tax rate will rise from 0.15% to 0.2%, and the maximum corporate income tax rate will increase from 24% to 25%, reversing the previous administration's tax cuts [2] - New rules for dividend income tax will impose a 20% tax on dividend income between 20 million and 300 million KRW, with a 35% rate on amounts exceeding 300 million KRW [2] Market Reaction - The tax increase announcement led to a significant drop in the KOSPI index, which fell by 3.9%, marking the largest single-day decline since April [1][2] - Investor confidence has been severely impacted, with market experts expressing disappointment over the sudden nature of the tax proposals, especially during a period of structural reform in the South Korean capital market [2][3] - Concerns have been raised that the higher capital gains tax could lead to long-term undervaluation of the stock market, as major shareholders might sell off stocks at year-end to avoid taxes, potentially destabilizing the market [2][3] Political Implications - The stark contrast between the government's current tax policies and President Lee's campaign promises, which included a goal of pushing the KOSPI index to 5,000 points, has led to a crisis of confidence among investors [4] - The government's need to find funding sources for consumer stimulus policies due to declining tax revenues from economic slowdown has prompted these tax reforms, which may further alienate retail investors and weaken corporate competitiveness [3][4]
韩国提高资本利得税计划引发反对声浪
Bei Jing Shang Bao·2025-08-04 15:52