South Korea will levy a capital gains tax on minority shareholders from 2023, but lower the stock transaction tax.  

Finance Minister Hong Nam-ki announced on Thursday that revisions to the financial taxation system are necessary in innovating the country's financial industry, adding that a complex tax scheme undermines investment.

Starting 2023, the government will levy a capital gains tax for all shareholders whose stock investment gains surpass 20 million won a year. Currently, South Korea levies a capital gains tax on major shareholders who own stocks worth more than one billion won in a single company. 

Starting in 2022, consolidated gains from all financial investment will be subjected to a single tax rate, while the government gradually lowers the stock transaction tax from point-25 to point-15 percent by 2023.

The tax proposal is subject to approval from the National Assembly.