Concerns emerged in the political arena following the announcement of a tax reform proposal by the Lee Jae-myung administration on August 3. The People Power Party intensified its criticism, labeling the proposal as the "worst tax increase."
On August 4, Democratic Party lawmaker Lee So-young expressed her dismay on Facebook, stating, "The government proposal containing the 'stock price stabilization law' I initially devised has been announced, and I cannot hide my astonishment."
She added, "The proposal from the Ministry of Finance and Economy undermines the very idea of the 'stock price stabilization law.' While the Lee Jae-myung administration initiated unprecedented capital market reforms through three amendments to the Commercial Act, the publicized government proposal raises concerns that its reform intentions may be misinterpreted as a retreat."
Lee emphasized that discussions on the tax reform bill will continue until the end of November, vowing to address any issues before then.
Cho Kuk, head of the Innovation Policy Research Institute of the Innovation Party, also took to Facebook, stating, "The tax reform proposal, which promised significant real estate reforms and raised public expectations, has failed to deliver on those promises."
He noted, "This reform appears to target only 'non-resident high-value property owners' under the premise of minimizing negative impacts on the 2028 general elections. However, it remains uncertain whether those benefiting from this reform will choose the Democratic Party. The implementation of these changes after 2028 does not guarantee that they will remain unaffected by the political environment and pressures that may arise post-election."
The People Power Party launched a full-scale offensive. Representative Jang Dong-hyuk remarked, "While the real estate tax reform is said to normalize transactions, the day citizens normalize the Lee Jae-myung administration is also approaching. This is a reform of the regime for fair governance."
Floor leader Jeong Jeom-sik criticized, "Presidential candidate Lee Jae-myung promised to ease real estate loan regulations, yet as president, he intensified high-level loan regulations, exacerbating the inventory lock-up phenomenon and driving up rental prices." He specifically pointed out that the recently announced real estate tax reform ignored OECD recommendations to lower transaction taxes if property taxes are to be increased, opting instead for a simultaneous increase in both, which he termed the "worst tax increase."
Representative Ahn Cheol-soo also posted on Facebook, stating, "There are hidden toxic clauses that invade retail investors' accounts. The ISA has been nerfed for the public's accounts."
He further criticized, "The Lee Jae-myung administration has turned the ISA into a ragtag scheme. The ISA, which forces all liquidity into a hellish national treasury, is a harmful substance that erodes the public's stock accounts. The ISA tax reform proposal, seemingly crafted by someone with no understanding of the stock market, must be scrapped."
* This article has been translated by AI.
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