Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Finance minister nominee faces obstacle in winning Assembly's endorsement
Finance Minister nominee Choi Sang-mok attends a confirmation hearing at the National Assembly in Yeouido, Seoul, Dec. 19. Yonhap
By Yi Whan-woo
Finance Minister nominee Choi Sang-mok faces a possible hurdle in winning parliamentary endorsement for the post, according to sources, Sunday, after the government pushed ahead last week to ease the capital gains tax rule in favor of wealthy stock investors.
The Ministry of Economy and Finance submitted a draft guideline to the Cabinet on revising the capital gains tax threshold from 1 billion won to 5 billion won ($3.83 million) for shareholders who own a corresponding value of stocks in a single company.
The loosened threshold will also be applied to those whose stake exceeds 1 percent of total shares listed on the benchmark KOSPI or 2 percent of total shares listed on the secondary KOSDAQ market.
According to the sources, Choi, formerly President Yoon Suk Yeol’s senior secretary for economic affairs, was believed to be behind the threshold hike.
The measure was taken in the name of Yoon’s market-driven economic vision, to prevent the year-end selling spree by major shareholders and a subsequent fall in the stock market.
The measure is hailed by the targeted stock investors. But the main opposition Democratic Party of Korea (DPK) finds the measure “lopsided for the haves” and is considering refusing to confirm Choi’s nomination as finance minister, the sources said.
Choi was nominated on Dec. 4, and had a confirmation hearing before the DPK-dominated National Assembly, Dec. 19.
The sources said that the DPK was especially displeased with Choi not consulting with the party in advance, although the rule on the capital gains tax threshold is stipulated on a presidential enactment decree and is thus not subject to parliamentary endorsement.
“The opposition possibly wanted Choi to take a gesture on the government-parliament cooperation as the next finance minister, and may take a retaliatory action by refusing his confirmation,” a source said.