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- South Korea to address the abolition of capital gains tax on Dec. 10.
- The Financial Supervisory Service backs policies for capital market growth.
- DPK prioritizes financial investment tax reform during the year-end session.
South Korea’s Democratic Party of Korea (DPK) is moving to abolish the capital gains tax on financial investments, with a decision expected during the National Assembly’s final regular session on December 10. The proposal is part of a larger effort to strengthen the country’s financial markets and stimulate economic growth.
Governor Lee Bok-hyun of the Financial Supervisory Service (FSS) voiced strong support for this plan, highlighting its potential to attract global investors and bolster South Korea’s competitive edge in global finance.
Major Reforms on the Agenda for National Assembly
December 10 marks the last regular session of the National Assembly for 2024, setting the stage for significant financial policy changes. A DPK spokesperson emphasized that removing the tax could enhance investor confidence and drive domestic investment.
Read also: $19B Leaves South Korean Banks—Heading Straight to Crypto and Stocks
The move comes as lawmakers continue to grapple with crypto taxation policies, including debates over asset valuation, exemptions, and reporting requirements. This session is expected to reignite discussions on how to balance market innovation with regulatory oversight.
Crypto Market Booms Amid Investment Shift
While the DPK’s latest action forms part of South Korea’s capital market advancement plan, which aims to attract more global investors and enhance domestic financial stability. Analysts anticipate that these policy changes could spark robust debate during the session, as lawmakers weigh in on several issues related to crypto taxation, including the tax deferral timeline, asset valuation, reporting requirements, and basic tax exemption.
South Korea’s crypto market has seen a surge as investors shifted 27 trillion won ($19.2 billion) from demand deposits in banks to higher-risk assets, including cryptocurrencies and stocks. Market observers link the surge in crypto investments to the shift in the global political landscape, especially after Trump’s return.
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