South Korea’s Finance Minister Choi Sang-mok announced plans to review and potentially scrap the forthcoming financial investment income tax to stabilise the stock market and alleviate investor confusion. The tax, set to be introduced next year, would impose a 20% levy on capital gains exceeding KRW50m (USD38,000) and 25% on gains over KRW300m. Choi criticised the scheme for increasing market instability and expressed doubts about the effectiveness of any partial revisions. Additionally, he discussed modifying the inheritance taxation system and reducing the highest tax rate from 50% to 40% for inheritances over one billion won. These moves align with President Yoon Suk Yeol’s commitment to deregulating the capital market to eliminate the “Korea discount” affecting the valuation of South Korean companies.
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