Tax Plan That Rattled Korean Stocks Heads to Ruling-Party Debate

South Korea’s ruling party will meet with government officials Sunday to present its view on a proposal to raise the capital gains tax, which rattled markets and sparked a wave of public backlash.

The Democratic Party setting a date for a discussion is an important signal for the speed of potential changes to the proposal after a petition against it swiftly gained enough support to send it to parliamentary committee review. But with Korean equities rebounding, there’s less pressure to respond — especially as President Lee Jae Myung is on vacation this week and the petition officially runs through the end of the month.