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Employees work at Hana Bank’s headquarters dealing room in Seoul on August 1, as the KOSPI fell 3.88% to close at 3,119.41. / Source: Yonhap News

The presidential office stated on August 3 that it is "too early to make changes" to the recently announced tax reform plan, despite ongoing controversy and market turmoil.

The government unveiled the plan on July 31, which includes lowering the threshold for major shareholders subject to capital gains tax from 5 billion won to 1 billion won. The move sparked confusion, with a public petition opposing the plan surpassing 80,000 signatures and mixed reactions within the ruling party.

When asked about the possibility of reconsidering the revised threshold, a senior presidential office official told Asia Today, "It has only been a few days since the tax reform was announced. It’s difficult to make sudden, drastic changes right now."

Regarding dissent within the ruling party, the official added, "It’s natural for the party to gather public opinion and refine its stance accordingly."

On August 1, the day after the tax reform announcement, the KOSPI closed at 3,119.41, down 126.03 points (3.88%), reflecting market concerns.

Kim Byung-ki, acting leader and floor leader of the Democratic Party, indicated a possible revision on Facebook, saying, "We will review options such as reconsidering the 1 billion won threshold through our party’s 'Tax Normalization Committee' and 'KOSPI 5000 Committee'."

However, Jin Sung-joon, the party’s policy committee chair, argued the opposite, writing on Facebook on August 2, "Restoring the corporate tax by 1%, reinstating the 0.05% securities transaction tax, and returning the capital gains threshold to 1 billion won are measures aimed at restoring revenue bases damaged under the Yoon Suk-yeol administration." He added that the party and government had "closely coordinated on the reform plan and will continue to do so during parliamentary review."