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Prime Minister Kim Min-seok presides over a high-level policy consultation between the government and the ruling party at the prime minister’s official residence in Samcheong-dong, Seoul, on August 10. / Source: Yonhap News

The government and the ruling Democratic Party of Korea held their first high-level policy consultation since party leader Rep. Chung Cheong-rae took office but failed to reach a conclusion on adjusting the threshold for capital gains tax on major shareholders.

Following the meeting, held on August 10 at the prime minister’s official residence in Samcheong-dong, Seoul, Senior Democratic Party Spokesman Park Soo-hyun told reporters, “There was discussion today regarding the capital gains tax on stock transactions, but it was not at a level to reach a conclusion.” He added, “No specific method for further discussion has been decided.”

The meeting drew particular attention over whether the ruling bloc would address the government’s earlier tax reform plan to lower the major shareholder threshold from holdings worth 5 billion won (approximately $3.6 million) per stock to 1 billion won (about $720,000). The announcement had triggered a sharp market drop and strong backlash from investors.

Within the Democratic Party, opinions remain divided on easing the threshold. Former policy chief Jin Sung-joon and lawmaker Lee So-young recently clashed on social media over the issue. Many lawmakers reportedly favor restoring the threshold to 5 billion won. In response to the growing dispute, Chung instructed Policy Chief Han Jeong-ae to come up with alternatives.

Park also said the meeting did not address possible Liberation Day special pardons for former Rebuilding Korea Party leader Cho Kuk, former lawmaker Yoon Mee-hyang, or others.