Prime Minister Kim: "Stock Capital Gains Tax Threshold Strengthened from ₩5 billion to ₩1 billion, Decision Will Be Made While Observing Market Reaction"

On Lee's Statement About Electricity Rate Hike: "Not An Immediate Plan"

On Prosecutorial Reform: "Separation of Investigation and Prosecution Will Proceed as Scheduled"

"Will Proceed Carefully So That the Public Does Not See It as Rash"

Prime Minister Kim Min-seok (pictured) stated on the 19th, regarding next year's tax revision plan to strengthen the capital gains tax threshold for major shareholders from ₩5 billion to ₩1 billion per stock, "We will observe the market's reaction closely and make a necessary decision."

At a press conference held that day at the Government Complex Seoul annex, Prime Minister Kim addressed the controversy over capital gains tax on major shareholders, saying, "There are sensitive market reactions to various issues, including tax reform plans related to the pragmatism mentioned by President Lee Jae-myung," and "not only President Lee, but the entire government, especially economic departments, are closely monitoring the market reaction."

Though the government and the ruling party are continuing their coordination over the criteria for major shareholder taxation, they have yet to reach an agreement. Prime Minister Kim said, "We are watching to see if there will be a time to consider further steps at an appropriate time and in an appropriate manner," adding, "We will make the necessary judgment as we monitor market reactions."

The Ministry of Economy and Finance on the 31st of last month announced a tax reform plan to tighten the threshold for stock capital gains tax on major shareholders from the current ₩5 billion to ₩1 billion. However, there has been strong opposition from individual investors, and the ruling Democratic Party of Korea expressed at a high-level party-government meeting on the 10th that the threshold should remain at ₩5 billion in discussions with the Presidential Office and the government.

Regarding President Lee's recent remarks on the inevitability of reflecting renewable energy expansion costs—the need for an electricity rate hike—Prime Minister Kim said, "This was not something mentioned with an immediate timeline in mind." He explained, "I understand it as raising an issue out of a need to begin informing and seeking understanding from the public about the current situation on a broad basis."

Prime Minister Kim also addressed the fact that the Presidential Office's National Planning Commission completed its work on the 13th but did not announce a government organizational restructuring plan, stating, "The overall direction held by the government is already known to the public and the media," but also emphasized, "Deliberation is needed on how best to proceed."

In particular, regarding the Democratic Party's plan to pursue prosecutorial reform before Chuseok, Prime Minister Kim said, "While the major direction of separating investigation and prosecution is clear, we must proceed carefully so the public does not see it as rash." Regarding the plan to place the National Investigation Commission, which would oversee the police, the Central Investigation Office, and the Corruption Investigation Office instead of the prosecution, under the Prime Minister's Office, he said, "Assuming it is my personal opinion, I am concerned about whether the commission will actually function in practice."

Bae Seong-su, Reporter baebae@hankyung.com