President Lee Orders Full Review of ISA and Stock-Suppressing Prevention Bills Amid Criticism

[Anchor]

President Lee Jae-myung has effectively ordered a full reconsideration of several recent government tax reform proposals, including the revision of Individual Savings Accounts (ISAs) and bills designed to prevent the intentional suppression of stock prices. It is reported that he sharply rebuked officials for insufficient preparation as criticism mounts among investors and younger generations over the government proposals.

Reporter Jeong Yunsik has the details.

[Reporter]

The tax reform package announced by the government on the 3rd included measures that would reduce certain benefits associated with Individual Savings Accounts, commonly known as tax-saving accounts.

Previously, even if account holders failed to fill the annual contribution limit of 20 million won, they could carry over the remaining allowance to the following year. However, this carry-over method is set to be abolished, and the contract period, which was effectively indefinite, will now be capped at a maximum of 5 years.

Even within the ruling party, criticisms emerged that the so-called bills to prevent stock price suppression—intended to crack down on controlling shareholders who deliberately lower stock prices to reduce inheritance or gift taxes—lack effectiveness and merely provide ways to evade regulations.

President Lee reportedly received reports regarding investor backlash against both issues during a situation assessment meeting the day before yesterday (the 7th) and effectively ordered a full review.

Regarding the ISA revision, which has drawn heavy criticism for reducing long-term tax-saving options, an official from the presidential office stated that the President rebuked officials, asking why such measures were pushed forward without proper explanation of the lost benefits and without adequate preparation. He also raised concerns that issues regarding the stock price suppression prevention bills were not properly reported.

In response, reactions within the ruling party included welcoming remarks, pledges to rectify the revision plans, and calls for the Ministry of Economy and Finance to wake up.

On the other hand, the main opposition People Power Party argued that the entire shoddy tax reform package has become an object of public distrust.

[Bae Jun-young / People Power Party Lawmaker : The government that designed policies in such a hastily cobbled-together manner must apologize to the public.]

They sharpened their criticism, stating that the President should take direct responsibility rather than passing the buck to aides and government ministries.

(Video by Ha Ryung | Video Editing by Won Hyung-hee)
※ Please note: This article was translated by AI and may contain errors.