[News Today] Capital gains tax threshold put on hold

[LEAD]
One of the most-talked about issues right now is the major shareholder threshold for capital gains tax.

The government's plan to lower it to 1 billion won hit a snag with opposition from the Democratic Party.

This matter was discussed during the meeting held between the government and the ruling party, but no decision was made.

[REPORT]
The first high-level consultation meeting between the government and the ruling party since Jung Chung-rae became leader of the Democratic Party.

The government, the ruling party and the presidential office all stressed unity for the success of the Lee Jae Myung administration.

Kim Min-seok / Prime Minister
Congratulations on the launch of the new leadership. The party, government and presidential office must act as one, sharing full responsibility.

The meeting focused on discussing follow-up measures to the Korea-U.S. tariff deal reached last month.

The party and government will create a financial package to open opportunities in the American market and prepare support measures for tariff-vulnerable industries and small parts manufacturers.

Jung Chung-rae / Chair, Democratic Party
We’ll share the results closely, assess their impact on the economy and industry and prepare measures.

However, the two sides failed to reach a conclusion on the closely watched issue of the threshold classifying major shareholders subject to capital gains tax.

The DP proposed maintaining the current threshold of five billion won in order to help boost the stock market.

But the government reportedly remained cautious.

Park Soo-hyun / Senior spokesperson, DP
The party and government discussed the issue closely and decided to monitor developments further before making a decision.

The government had earlier proposed tax reforms to roll back the previous administration’s tax cuts for the wealthy and secure revenue by tightening the major shareholder threshold for capital gains tax to one billion won per stock.

The ruling party was divided over the proposal.