Rep. Lee Eon-ju of the Democratic Party of Korea [Provided by Rep. Lee's office]
Rep. Lee Eon-ju of the Democratic Party of Korea [Provided by Rep. Lee's office]

Rep. Lee Eon-ju of the Democratic Party of Korea on Thursday called for a full review of the ISA-related provisions in the government's 2026 tax reform package.

In a Facebook post Thursday, Lee criticized the government's newly proposed "productive finance ISA," saying it would ban the carryover of annual contribution limits, restrict contract periods to five years — eliminating the previously unlimited extension option — and retroactively reduce benefits for existing ISA holders. "This runs counter to the fundamental purpose of the ISA system, which is to encourage asset formation through long-term investment," she said.

She said long-term investment is only possible when investors can flexibly adjust the timing and scale of their contributions to fit their life circumstances. "Restricting carryover contributions and contract periods would significantly undermine that flexibility," she said. She added that the core rationale behind calls to invigorate the capital markets had always been to help ordinary people — particularly young people who struggle to build assets — do so through long-term investment.

Lee also said the market has raised concerns that the government is trying to channel funds into the domestic stock market through the tax overhaul. "The government should make domestic market investment more attractive so that money flows in naturally — not try to redirect funds by expanding the disadvantages of overseas investment," she said.

She also said retail investors who have already suffered through volatile markets because of single-stock leveraged ETFs should not be burdened with further risk. Telling investors to unconditionally exit foreign markets when the domestic market has lost the public's trust "is excessively coercive administration," she said.

"The top priority right now is to stabilize the Kospi and calm the markets," Lee said, adding that the government should not push through a policy that strips investors of existing benefits by offering products that fall short of current conditions.


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