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Deputy Prime Minister and Finance Minister Koo Yoon-cheol speaks at a ruling party–government meeting on holiday economic measures at the National Assembly in Yeouido, Seoul, on September 15, where he announced that the 5 billion won threshold for major shareholders subject to stock transfer tax will remain unchanged. / Source: Yonhap News

Deputy Prime Minister and Finance Minister Koo Yoon-cheol announced on September 15 that the government will maintain the current 5 billion won threshold for defining major shareholders subject to capital gains tax on stock transfers.

Speaking at a ruling party–government meeting on holiday economic measures at the National Assembly, Koo said, “Taking into account the public demand for revitalizing the capital market as well as the Democratic Party’s position on keeping the standard, we decided to maintain the current threshold.”

The finance ministry had previously proposed tightening the standard from 5 billion won to 1 billion won per stockholding as part of a tax reform plan. The move, however, drew criticism for running counter to the Lee Jae-myung administration’s policy goal of ushering in a “KOSPI 5000 era.”

“Since the announcement of the tax reform plan in July, the government has carefully weighed the balance between tax normalization and the need to boost the capital market,” Koo said. He added that the government would continue to support corporate and economic growth through market revitalization and productive finance.