After the governing People Power Party (PPP) proposed to scrap the financial investment income tax, the majority Democratic Party (DP) vehemently opposed the idea.
The government will push to abolish a planned capital gains tax on stocks and step up measures to prevent illegal short selling in a bid to address the so-called Korea discount.
Salaried workers turned out to be the biggest losers from the increase in income tax in Korea.
With the government planning to increase taxes on retail investors, Koreans are scrambling to offload their stocks in a bid to evade the new charges.
Top earners in Korea pay relatively little in taxes, but the burden has been increasing fast and could continue to rise quickly.
Gates Korea, a mechanical goods manufacturer and subsidiary of Denver-based Gates, is closing and shuttering its Daegu factory, with 147 jobs being lost.
Korean tax authorities say they plan to focus a spotlight on the country's top YouTubers, social media influencers and other content creators who attempt to dodge taxes by under-declaring income earned from global IT firms.
Korea JoongAng Daily Sitemap
