Ruling party urges government to change capital gains tax plans

Democratic Party Chairman Rep. Lee Nak-yon. (Yonhap)

The ruling Democratic Party appears to be moving against the government over sensitive tax reform issues in response to a public outcry.

Speaking on the Democratic Party’s official YouTube channel Thursday, party Chairman Lee Nak-yon hinted that the party would negotiate with the government to alter the proposed changes.

“The comments are about the requirements of (being categorized as) major shareholders who are subjected to capital gains tax, to abolish the 300 million won (standard), and (the party) will ensure that you do not have to worry too much,” Lee said in response to comments regarding the planned changes.

Under the changes, proposed to go into effect at the end of the year, investors with more than 300 million won ($265,000) worth of a company’s shares would be categorized as major shareholders, and as such would be subject to capital gains tax of between 22 percent and 33 percent on profits gained from selling their stocks after April 2021. At present, individuals holding more than 1 billion won worth of stocks are categorized as major shareholders.

“The results will be made known within a few days, and the results will not worry you too much,” Lee said. Lee did not clarify whether the ruling party was currently in talks with concerned government organizations to address the issue.

But at a separate event, also on Thursday, Lee said the party and the government would soon be reaching an agreement on “very hot issues concerning real estate and stocks.”

While Lee did not elaborate, he has stated in recent days that the party will devise policies to address the concerns of homeowners who have owned one property and lived there for long periods.

By Choi He-suk (cheesuk@heraldcorp.com)