South Korea promises to abolish the capital gains tax on investments

The South Korean Financial Supervisory Service pledged on Wednesday to abolish capital gains tax on investments and reduce the stock transaction tax to 0.15% by 2025.

The authority aims, through this step, to develop the wealth of ordinary citizens and reduce the financial burdens on them. It is also part of its policy objectives for the current year, which include providing financial support worth 210 trillion won ($157 billion).

On the other hand, South Korean President Moon Jae-in earlier announced that he would cancel the taxes imposed on financial investments, which were scheduled to be implemented at the beginning of the next year.

The Deputy Chairman of the Financial Supervisory Authority, Kim Sun-young, stated in a press release on Tuesday that the government is making several efforts to help improve the lives of our people through financial services. However, there are areas that require increased efforts to expand the progress achieved so far.

He added:

“From now on, the government will work to ensure that the financial market is like a ladder of opportunities that help the people to progress.”

The South Korean news agency “Yonhap” stated that South Korea reduced the stock transaction tax from 0.25 percent in 2020 to 0.23 percent in 2021, and then to 0.2 percent last year.