Archive · 10 Aug 2025
S. Korea to Deliberate Capital Gains Tax with Ruling Party
The South Korean government and the ruling party are talking about changing a tax called capital gains tax.
They are discussing lowering the amount of money someone needs to have in stocks to be considered a 'large shareholder', which would mean they pay more taxes.
If it's approved, this would undo a decision made by the previous government.
They also talked about helping businesses that might be affected by a new trade deal with the U.S. Stocks have been doing poorly lately, possibly because of these tax discussions.
South Korean government and ruling party will deliberate on capital gains tax.
They discussed lowering the large shareholder threshold from 5 billion won to 1 billion won.
This proposal reverses the previous administration's decision.
Follow-up measures for the US trade deal were also discussed.
South Korean stocks recently saw a sharp decline.
- Who
- The South Korean government and the ruling Democratic Party.
- What
- Deliberation on capital gains tax proposal and US trade deal follow-up measures.
- When
- Agreed on Sunday.
- Where
- South Korea.
- Why
- To discuss and coordinate on the capital gains tax proposal and trade deal.
Current Govt. / Ruling Party
Prior Administration
Capital Gains Tax Threshold
Current Govt. / Ruling Party
Propose to lower the threshold for large shareholders to increase capital gains tax.
Prior Administration
Prior administration had raised the threshold.
- Meeting Participants
- Government and ruling Democratic Party (DP)
- Main Topic
- Capital gains tax
- Threshold discussed
- Lowering large shareholder threshold from 5 billion won to 1 billion won
- Trade Deal
- South Korea-US
- Stock Market Impact
- Stocks tumbled earlier this month