DPK to decide on delay of financial investment income tax
Leader of the main opposition Democratic Party of Korea Lee Jae-myung speaks during a supreme council meeting at the National Assembly in Seoul, Sept. 30. Yonhap
The main opposition Democratic Party of Korea (DPK) is likely to decide as early as this week whether to agree on the postponement of a new investment tax set to take effect next year, officials said Monday, with its leadership weighing a possible delay of the policy.
The DPK will hold a general meeting of party lawmakers as early as Friday or Saturday and swiftly come to a decision, Rep. Jo Seoung-lae, the DPK's chief spokesperson, told reporters after a supreme council meeting.
The ruling People Power Party (PPP) has been urging the DPK to agree on the abolition, or at least a postponement, of the financial investment income tax, which was originally set to be introduced last year but was delayed by two years until the start of 2025.
DPK lawmakers remain divided over the issue, but observers say the party is likely to decide on delaying the tax.
During a TV debate of DPK chairman candidates in August, DPK leader Lee Jae-myung called for the postponement of the financial investment income tax.
He also hinted at delaying the tax in an interview with a local broadcaster Sunday, saying the DPK "cannot but consider the public sentiment" that now is not the right time to introduce the policy.
A DPK official told Yonhap News Agency over the phone that "there is a consensus" within the party that delaying the investment income tax is unavoidable.
Some DPK lawmakers have insisted the financial investment income tax should go into effect as planned, expressing concerns over a potential decrease in tax revenues.
Under the new scheme, capital gains of over 50 million won ($38,138) 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. (Yonhap)