South Korea Scraps Capital Gains Tax Plans After Retail Backlash

South Korea has scrapped its plans to lower the capital gains tax threshold for stock investors, following a strong backlash from retail investors. The proposal, introduced by the new administration led by President Lee Jae Myung, was aimed at increasing tax revenue from the country's booming stock market. However, the plan faced widespread criticism from individual investors who argued that it would unfairly target smaller traders and discourage investment. In response to the public outcry, the government has decided to maintain the existing capital gains tax system, which exempts individual investors with gains below 50 million won ($36,000) from taxation. This decision marks a significant policy reversal for the Lee administration, which has been in office for only a few months. The move highlights the importance of public opinion and the challenges faced by policymakers in balancing the need for revenue generation with the concerns of the investing public.