SEOUL– Lee Jae-myung, the presidential candidate of the ruling Democratic Party, on Monday vowed to abolish the stock transaction tax if he is elected president next month.
“I will abolish the stock transaction tax that is imposed equally on retail investors and the rich, not the transfer income tax on stocks (whose abolition) constitutes a tax cut for the rich,” Lee said in a post on a social network service.
Lee said retail investors are suffering badly from the country’s roiling stock market as well as other market misdeeds, such as a massive embezzlement case by executives at a listed company.
“If such a crisis can be harnessed as a growth engine, our nation’s stock market can be completely reformed,” he said, pledging to “protect retail investors and create new opportunities.”
Lee’s presidential race rival, Yoon Suk-yeol of the main opposition People Power Party, earlier announced the abolition of the stock transaction tax as his campaign pledge.
Yoon, however, took back the promise, pledging instead to cancel the introduction of the stock transfer income tax, set for 2023, to help retain deep-pocketed individual investors.
The government collected 10.3 trillion won (US$8.6 billion) in stock transaction taxes last year, which run up to 0.25 percent of the prices of stocks sold. The trading tax rate is set to be further cut to 0.15 percent by 2023.
Source: Yonhap News Agency