S. Korea to impose new tax on gains from all financial investment from 2022

SEJONG, June 25 (Yonhap) -- South Korea plans to start levying a new tax on consolidated gains from all financial investment in 2022, Finance Minister Hong Nam-ki said Thursday. In addition, the government plans to levy a capital gains tax on stock investment gains surpassing 20 million won (US$16,632) beginning in 2023, Hong said. Currently, South Korea levies a capital gains tax on major shareholders who own more than 1 billion won in a single stock. The tax proposal is aimed at "revitalizing financial investment by improving the rationalization of taxation," Hong said, adding that a complex tax scheme on financial products has undermined investment. Starting in 2022, consolidated gains from all financial investment will be subjected to a single tax rate, Hong said. The government will gradually lower the stock transaction tax to 0.15 percent in 2023 from the current 0.25 percent, Hong said. The tax proposal is subjected to approval from the National Assembly. kdh@yna.co.kr (END)