The main opposition Democratic Party has decided to back down from its previous stance and consent to the abolition of a new investment tax set to take effect in 2025. 

Party Chairman Lee Jae-myung announced the decision Monday during the party’s Supreme Council meeting at the National Assembly, saying the opposition has agreed to do away with the tax as the government and the ruling People Power Party have asked.

Lee said going ahead with the financial investment income tax would have been consistent with the party’s values, but that the stock market is in a very bad place right now.

He said the party will make every effort to revise the Commercial Act and pursue other legislation to facilitate the recovery of the stock market.

The financial investment income tax was originally set to take effect at the start of 2023, but its introduction was delayed until the start of 2025.