On 3 November 2020, South Korea has decided to postpone the enforcement to lower the standard for large shareholders subject to stock capital gains tax to KRW 300 million.
At present, a shareholder who owns more than KRW 1 billion is considered a “large shareholder” and should pay capital gains tax at a rate ranging from 22% to 33%. The KRW 1billion threshold was scheduled to be lowered to KRW 300m from April 2021.
The government is planning to announce the criteria for large shareholders after the results of the US presidential election come out and the stock market situation is observed.
