Finance Minister Choi Sang-mok has characterized the government’s decision to scrap capital gains tax on income from financial investments as a tax reduction policy for investors, rejecting criticism that it is a tax cut for the rich.

The minister made the remarks on Sunday, appearing on a KBS program, while discussing economic issues and the government’s measures.

Minister Choi said that the government decided to scrap the tax in order to ease the burden on investors, expand demand, and ultimately promote the development of the capital market.

The minister said that it is difficult for him to agree with the view that it is a tax cut for the rich, saying that although a limited portion of investors will benefit from the abolition of the tax, considering their significant influence on the market, the abolition is a tax cut for 20 million investors.

Regarding the issue of inheritance tax reform recently proposed by President Yoon Suk Yeol, the minister said that the government will pursue it with caution, citing a controversy surrounding the issue.

Choi said that some are calling for the reform, citing the country’s higher inheritance tax compared to advanced countries, while others are voicing a cautious approach.