The presidential office, the government and the ruling Democratic Party(DP) have agreed to lower the top marginal rate for separately taxed dividend income from the government's initial proposal of 35 percent.

DP spokesperson Park Soo-hyun said Sunday during a press briefing at the National Assembly that the ruling bloc had agreed on the need for a reasonable adjustment plan for the top rate and that specifics will be determined during the upcoming parliamentary session.

Park said participants in a recent policy meeting shared the view that liquidity should be redirected from real estate into the productive corporate sector amid growing instability in the housing market.

Under current law, if annual dividend income exceeds 20 million won, it is combined with other financial income for taxation purposes and subject to a progressive composite rate of up to 45 percent.

In August, the government announced its 2025 tax reform package, which included a separate taxation system for dividend income with a proposed top tax rate of 35 percent.

However, voices within the ruling party have called for a lower ceiling of 25 percent to stimulate the stock market, and the presidential office is reportedly supportive of the proposal.