Representative Lee Jae-myung’s position is ambiguous… It is uncertain whether a conclusion will be reached
“There is also considerable talk within the party of postponing the Financial Investment Tax (FIT). There is growing concern that if we implement it as is in January next year, we could end up being blamed for the stock market slump.”
Regarding the discussion on the gold investment tax, a member of the Democratic Party of Korea described the mood within the party as follows. There are loud voices calling for “implementation” led by Policy Committee Chairman Jin Seong-jun, but many members of the party also believe that the public sentiment turning away from this is serious.
Photo = Getty Images Bank
The Democratic Party is scheduled to hold a public debate on the issue of deferring the gold investment tax on the 24th. While the government and the ruling party are advocating for the abolition of the gold investment tax, citing concerns over the negative impact it will have on the Korean stock market, the Democratic Party, which holds the legislative ‘key’, is sharply divided in its internal opinions.
Opinions within the Democratic Party are divided as follows:
◆Jin Seong-jun “Will stock prices rise if the gold investment tax is abolished?”
The leader of the argument for implementing the gold investment tax is Vice Chairman Jin Jeong-cheol. The perception is that ‘abolition of the gold investment tax = tax cuts for the rich.’
As the theory of a deferral was raised within the party, Vice Chairman Jin Jeong-cheol recently said on Facebook, “If the gold investment tax is abolished, will stock prices really rise? Please do not be fooled by the sophistry of those with vested interests.”
The Democratic Party of Korea’s Lee Jae-myung and Supreme Council member Kim Min-seok (right) are talking in the National Assembly plenary hall on the 19th. Newsis
He continued, “The core argument against this is that stock prices are bound to plummet as big players try to avoid the gold investment tax by leaving our stock market,” and “But in reality, that’s not the case. Investors invest by looking at the value of a company, and they rarely sell stocks that will rise in value to avoid taxes.”
He also claimed, “The Yoon Seok-yeol administration’s call for the abolition of the gold investment tax is an attempt to further solidify their vested interest cartel by giving benefits to the wealthy.”
Vice Chairman Jin Jeong-wook said, “Aside from the abolition of the gold investment tax, lowering the top corporate tax and inheritance tax rates, and easing the comprehensive real estate tax, everything the Yoon Seok-yeol administration is putting forward is nothing more than giving tax benefits to the wealthy,” adding, “They keep saying it is for the purpose of increasing the value of our stock market, but they haven’t said a single word about improving the governance structure of our companies.”
Dealers are working at the Hana Bank dealing room in Jung-gu, Seoul on the 20th. Newsis
◆Kim Min-seok “Let’s give it about 3 years to allow time for verification”
The party leadership, including Rep. Lee So-young and Supreme Council members Lee Un-ju and Kim Min-seok, participated in the postponement.
While Rep. Lee So-young, Rep. Lee Yeon-hee, Rep. Jeon Yong-gi, and others have publicly expressed their opinions on a postponement, Rep. Lee Un-ju was the first among the supreme council members to lend support to the postponement argument.
The top member said, “If the gold investment tax is implemented too hastily, the psychological burden of 14 million people participating in the stock market due to concerns about investment losses will increase,” and added, “It is not too late to implement it after the South Korean stock market has been developed.”
Kim Min-seok, the highest member, also said, “The ‘one-shot supplementary implementation theory’ of implementing the revision of the Commercial Act, the Individual Savings Account (ISA), and the financial investment tax all at the same time is good in intention, but it is unreasonable.” He added, “The implementation of the financial investment tax should be delayed by about three years to allow time to verify the effectiveness of stock market reform and support.”
On the 19th, Democratic Party of Korea leader Lee Jae-myung, policy committee chairman Jin Seong-jun, and other lawmakers are entering the plenary hall, passing People Power Party lawmakers who are protesting against the Democratic Party in the National Assembly Rotunda Hall. News 1
◆Lee Jae-myung ‘Suggesting a deferral → Enforcing with relaxation’… Ambiguous position
Lee Jae-myung, who is leading the Democratic Party, is showing an ambiguous stance. During the party convention in July, Lee suggested a delay, saying, “I think we need to think about the timing of implementation,” but during a meeting with Han Dong-hoon, the People Power Party leader, on the 1st, he said, “I hope we can also review and discuss a plan to significantly ease the gold investment tax for a certain period of time.”
Because of this, there are skeptical views on whether the Democratic Party can establish a clear party position through the debate on the 24th. At the general meeting of lawmakers on the 19th, Representative Lee said, “(During the Chuseok holiday) there were quite a few people who were worried about stocks,” and “There were elderly people gathered in remote rural areas and worried, ‘Should we sell our stocks?’” and “When they asked me, I honestly told them, ‘In the current situation, it would be better not to buy. ’”
There are also concerns that the Democratic Party’s delay in making a decision is increasing uncertainty, leading to growing market confusion and anxiety.
Reporter Lee Hyun-mi engine@segye.com
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Source: www.segye.com
