Ruling party considers task force on tax increase for ultra - rich The ruling Grand National Party ’ s attention has been drawn to the possibility of a hike in capital gains taxes after its strongest presidential hopeful Rep . Park Geun - hye stressed the need for it Thursday . Former GNP chairwoman Park said raising taxes on major shareholders ’ capital gains and investment returns could help redress economic inequality . Her comments came as the conservative party has been discussing heavier income taxes for the wealthiest , among other options , to win back public support ahead of general and presidential elections next year . “ The idea of creating an additional 40 - percent income tax band has been floated . But that only deals with levying higher income taxes , which would total less than 1 trillion won ( $ 886 million ) , ” Park said in an interview with a local TV channel . “ In fact , there is a need to impose ( higher ) taxes on major shareholders ’ transactions of stocks and other financial assets rather than on ( incomes ) . ” Reformist party members have suggested that a new tax band for those who make a yearly income of 150 - 200 million won be created , in a shift from the party ’ s previous policy of tax cuts for the rich . Through her comments , the former GNP chairwoman indicated that the party should pay more attention to taxation for those who have accumulated their wealth through unearned revenues rather than high - salaried citizens . Some within the party warned of possible resistance from its traditional supporters of tax cuts , whose impact they claim will trickle down to the general public . Although supporters welcomed the “ egalitarian move , ” those against the tax increase argue that heavier taxes could dampen local financial markets and encourage investors to seek foreign investment destinations . The party is expected to have a heated debate over a set of taxation methods . The GNP policy committee is considering setting up a taskforce dedicated to dealing with this issue . It also seeks to hold a general meeting of its party lawmakers as early as this week to solicit their opinions . “ Given a variety of talks over the tax increase ( for the rich ) , time has come to conduct a comprehensive policy review of the issue , ” GNP policy chief Rep . Lee Ju - young told reporters . “ We will carefully look at the overall tax system in light of the two methods ― one on income taxes and the other on taxes on capital gains . ” Amid a flurry of discussions over the tax increase , Rep . Lim Hae - kyu , vice policy chief of the party , plans to submit a revision bill as early as this week . The bill seeks heavier taxes on large gains from the transfer of securities and other financial assets while excluding small - scale investors from the taxation list . “ The basic principle is that there should be taxes imposed where there are gains , but taxes on capital gains have not been properly imposed , ” Lim told the media . “ As our stock market has considerably improved , we need to expand those subject to taxes on transfer gains . ” Since its defeat in the Seoul mayoral by - election in October , the GNP has been discussing measures to shake off its image as an “ elitist , wealthy party ” and shore up trust among ordinary citizens . By Song Sang - ho ( sshluck @ heraldm . com )