President Lee Rebukes ISA and Share Price Suppression Revision Plans... Orders Total Reconsideration

[Anchor]

President Lee Jae-myung has effectively ordered a full reconsideration of the government's recently unveiled Individual Savings Account (ISA) revision plan and the bill to prevent share price suppression. President Lee was reportedly briefed on the backlash from investors, particularly the younger generation, and rebuked his aides, asking, "Why wasn't this prepared properly?"

Jeong Yunsik reports.

[Reporter]

The tax code revision announced by the government on the 3rd included provisions that reduce some of the benefits of the Individual Savings Account (ISA), commonly known as a tax-saving account.

Previously, even if a person could not fill the annual contribution limit of 20 million won, the remaining amount could be carried over to the next year. However, this carry-over method is set to be abolished, and the contract period, which was practically indefinite, will be capped at a maximum of 5 years.

Even within the ruling party, criticisms emerged that the so-called "bill to prevent share price suppression"—aimed at catching controlling shareholders who intentionally depress stock prices to reduce inheritance or gift taxes—lacked effectiveness and merely "provided ways to evade it."

President Lee was briefed on the backlash from investors regarding both issues during a situation review meeting yesterday (the 7th) and reportedly ordered a virtual "total reconsideration."

Regarding the ISA revision plan, which has drawn heavy criticism for reducing long-term tax-saving methods, a Cheong Wa Dae official stated that the President rebuked the administration by asking, "Why did you proceed without proper preparation or a proper explanation of the lost benefits?" He also reportedly pointed out that proper reports on the problems with the anti-share price suppression bill had not been made.

In response, the ruling party reacted with statements such as "We actively welcome this," "We will correct the revision plan," and "The Ministry of Economy and Finance needs to wake up."

On the other hand, the opposition People Power Party argued that the poorly prepared tax code revision as a whole has become an object of public distrust.

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

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

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