Asia Economy Interview "Can Reforms Succeed If We Proceed Slowly While People Are Struggling?"
Party Forms Tax Reform Headquarters to Fully Push Tax Increase Plan
[Asia Economy Reporter Park Cheol-eung] Kim Jong-cheol, leader of the Justice Party, presented the 'National Income Insurance System' including self-employed workers and 'Basic Assets by Life Cycle' as key tasks. He also plans to create an internal 'Tax Reform Headquarters' to actively prepare tax increase measures.
Considering the severe crisis where younger generations are reluctant to have children, he believes the pace of reform must be accelerated. He harshly criticized the Democratic Party of Korea, saying it is "complacent with reality," "pretending to reform," and "trying to settle everything with just prosecutorial reform." Diagnosing the government and ruling party as becoming conservative, he stated that the Justice Party will lead the change as a progressive party.
In an interview with Asia Economy at the National Assembly on the 27th, Kim cited 'Basic Assets' as one of the main policy slogans, saying, "Former leader Sim Sang-jung proposed a basic asset of 30 million won at age 20, but rather than giving it all at once, we are considering providing it by life cycle to bridge the asset gap."
For example, the plan is to provide payments to those with relatively low asset levels at specific ages such as 25, 35, and 45 to reduce disparities. Kim explained, "The idea is to collect taxes from those with substantial assets to reduce the gap somewhat." He recently met with Kim Doo-kwan, a Democratic Party lawmaker who also advocates for the basic asset system, and confirmed mutual understanding.
The need to expand employment insurance has increased due to the COVID-19 pandemic, and the Justice Party has advocated for a 'National Employment and Income Insurance System.' Kim said, "To clearly differentiate from the plans proposed by the Democratic Party and others, we intend to call it 'National Income Insurance.' It aims to create a large insurance system encompassing the self-employed, platform workers, and irregular workers in blind spots. Government funding is necessary, but it is an issue that must be addressed."
He also intends to step on the accelerator for tax increases. He believes welfare should be expanded by raising tax rates on property holding tax, income tax, and corporate tax. Kim said, "Since taxes have the nature of a social solidarity fund, low-income groups should also participate in tax increases, contribute, and enjoy benefits together," adding, "We plan to create an organization like an internal Tax Reform Headquarters to actively promote this." He is advocating for 'breaking taboos' such as integrating civil servant pensions, private school pensions, and national pensions. Regarding tax increases, it appears he wants to move away from the existing progressive frame of 'applying only to the wealthy.'
As one reason for the Justice Party's existence, he said, "We must prevent the government and ruling party from becoming conservative." Kim criticized, "Conservatives usually settle for reality, and the Democratic Party is like that now. Even looking at the Serious Accident Punishment Act, Leader Lee Nak-yeon said he would implement it, but isn't it heading toward amending the Occupational Safety and Health Act to punish only site managers, not CEOs? I see this as complacency with reality and a pretense of reform."
He continued, "The Democratic Party is 'settling' its reformist image with just prosecutorial reform," adding, "For example, they said they would raise welfare through tax system reform, but nothing noticeable has appeared. Preventing conservatism is beneficial to the people."
Regarding the Lime and Optimus scandal controversy, he said, "The essence is to improve the system so that private equity funds cannot produce victims like this again, and to punish politicians, financial officials, and prosecutors involved in corruption," adding, "But why has it turned into a fight between Justice Minister Choo Mi-ae and Prosecutor General Yoon Seok-youl? Why did a notorious swindler become a whistleblower opposing the government, and now the embodiment of prosecutorial reform? It is ridiculous that the government and the main opposition party are swayed by the words of a swindler."
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