President Yoon Seok-yeol Shocks with Financial Tax Abolition, Delighting Individual Investors

President Yoon Seok-yeol Announces Abolition of Financial Investment Income Tax, Receives Enthusiastic Response from Individual Investors

President Yoon Seok-yeol made a surprising announcement during the stock market opening ceremony, stating that the financial investment income tax, which is set to be implemented next year, will be completely abolished. This unexpected move is believed to be targeted towards capturing the sentiment of individual investors.

The financial investment income tax is a tax imposed on income generated through various financial investments, including stocks, bonds, and funds. Under the current system, individuals who earn more than 50 million won through stock investments are required to pay 20% of their capital gains as the financial investment income tax. This tax was initially planned to be implemented last year as part of the government’s efforts to advance the capital market. However, due to strong opposition from individual investors and the industry, it was agreed to postpone its implementation until next year.

Interestingly, the announcement of the tax abolition came directly from the presidential office, rather than the government responsible for tax management. While the government officially confirmed the abolition after the president’s statement, they have not yet expressed their position on the securities transaction tax, which is also a matter that needs to be addressed.

Positive Response from Individual Investors, But Inconsistency in Financial Tax Reforms

The announcement of the financial investment income tax abolition has been met with enthusiasm from individual investors. They believe that this move will encourage more liquidity and idle funds to flow into the stock market, potentially revitalizing it.

However, there have been criticisms regarding the inconsistency in financial tax reforms ahead of the upcoming general election. The government’s position on the easing of major shareholder transfer taxes has not been consistent, raising concerns about the lack of coherence in financial tax policies.

Moreover, the passage of the bill for the abolition of the financial investment income tax remains uncertain as opposition lawmakers have already voiced their opposition. The bill would need to go through the National Assembly for approval, and its fate is currently unclear.

President Yoon Seok-yeol’s Message to Individual Investors

President Yoon Seok-yeol’s announcement during the stock market opening ceremony can be seen as a direct message to individual investors. By abolishing the financial investment income tax, he aims to address their concerns and create a more favorable environment for their participation in the stock market.

Overall, President Yoon Seok-yeol’s unexpected announcement has generated positive reactions from individual investors. While the impact of the tax abolition remains to be seen, it is clear that the government is actively considering measures to stimulate the stock market and attract more participation from individual investors.

Source: JTBC News