[Yeouido Interview] Park Dae-chul "Is Instilling Fear in Companies the Way to Prevent Disasters?"

"Opposition's 'Tax Cuts for the Rich' Is a Completely Inaccurate Metaphor"
"The Most Important Value Is Worker Safety... Preventing Accidents Is What Matters"

Park Dae-chul, Chairman of the National Assembly Budget and Accounts Committee. / Photo by Dongju Yoon doso7@

[Asia Economy Reporter Lee Ji-eun] The subcommittee of the Planning and Finance Committee, which will discuss the Yoon Seok-yeol administration's tax law revision proposal for next year, was barely formed after four months of difficulties following the opening of the second half of the 21st National Assembly. The first meeting of the Tax Subcommittee was held on the 21st, with less than ten days remaining before the deadline for the standing committee review of subsidiary bills on the 30th. There are strong voices expressing concerns about a 'hasty review.' Park Dae-chul, a three-term member of the National Assembly and chairman of the Planning and Finance Committee from the People Power Party, looked burdened.

-The opposition party frames the Yoon Seok-yeol administration's tax law revision as a 'tax cut for the rich.' What is the solution?

=Among the government and ruling party's tax revision proposals, none target any specific individual. The Democratic Party calls the corporate tax reduction a 'tax cut for the rich,' but a corporation is not a person. While it may have corporate personality, the corporation itself is not rich. The tax cuts apply to each company and corporation, not to specific owners. Owners of large corporations are taxed separately under the income tax system. Corporate tax is a tax system on business activities and profits of companies, so calling it a 'tax cut for the rich' is a completely inaccurate analogy.

-Recently, the Ministry of Economy and Finance proposed the enabling law for the 'Fiscal Rules' it declared. Is tightening fiscal policy appropriate in a difficult economic situation?

=The national debt ratio has risen from about 36% in 2017 to nearly 50% during the five years of the Moon Jae-in administration. Due to concerns about the entrenchment of large fiscal deficits caused by excessive expansionary fiscal policy under the previous government, fiscal control is inevitable. The amendment aims to maintain the managed fiscal balance within -3% of the Gross Domestic Product (GDP). The opposition's argument that 'money should be injected during economic crises' has merit. However, the amendment includes exceptions that exempt the application of the rules during emergencies such as economic crises, disasters, and calamities, so there is no need for concern.

-The subcommittee was barely formed. With the bill review deadline approaching, there are concerns about a hasty review.

=The Democratic Party made demands unprecedented in National Assembly practices, which delayed the entire subcommittee formation. Since the review of the budget and subsidiary budget bills was delayed, I think this is a time to speed up the review and for the National Assembly to focus on more in-depth examination.

-You proposed an amendment to the Serious Accident Punishment Act in June. Recently, the opposition has visited labor groups, raising voices to 'block the deterioration of the Serious Accident Punishment Act.' What is your view?

=I proposed the bill when I was chairman of the Environment and Labor Committee. Although the Serious Accident Punishment Act started with several problems, accidents have not decreased since its implementation. If a law is enacted but accidents do not decrease, it indicates the law is ineffective. Calling efforts to amend the law 'deterioration' is incorrect. Rather, since the law lacks effectiveness, the amendment aims to enhance it.

Park Dae-chul, Chairman of the National Assembly Budget and Accounts Committee. / Photo by Dongju Yoon doso7@

-The amendment's core is to reduce penalties for business owners who complete safety certification. How do you respond to criticism that it favors business owners?

=That is absolutely not the case. Whether the law is currently enforced or will be amended, the most important value is worker safety. The key is whether accidents can be prevented. But does instilling fear in companies prevent accidents? No. Fear does not prevent accidents; it results in companies being afraid to build apartments. Therefore, if business owners have made sufficiently recognized preventive efforts, not arbitrarily but legitimately, and accidents occur beyond their intention or expectation, reducing their responsibility will encourage more diligent preventive measures.

-You recently proposed the so-called 'Safe Lease Deposit Act' to protect tenants' lease deposits. Please explain its purpose.

=The Safe Lease Deposit Act is a bill to establish the legal basis for implementing the government's 'Measures to Prevent Jeonse Fraud' announced last September. The 'National Tax Collection Act' and 'Framework Act on National Taxes' proposed to protect tenants' lease deposits allow tenants to check unpaid national taxes without the landlord's consent and ensure that even if the landlord changes during the contract period, the lease deposit with a confirmed date priority is repaid before the landlord's taxes. It aims to protect tenants from Jeonse fraud. Currently, without the landlord's consent, tenants find it difficult to verify whether any debt relationship exists on the property they rent or whether their deposit is in a safe state. President Yoon Seok-yeol has also expressed his intention to 'further activate guarantees for the return of Jeonse deposits.'

-Due to the real estate market slump, there are concerns about reverse Jeonse difficulties. Are there legislative areas that need more attention?

=I think more bills are needed to promote the supply of high-quality public rental housing. President Yoon also said, 'We will increase the supply of high-quality public rental housing where anyone would want to live in a good environment.' Bills supporting that are necessary.

-Each member of the National Assembly is a constitutional institution. Do you have a philosophy regarding bill proposals?

=Laws must be sustainable but sometimes flexible. We must pursue two goals simultaneously. While maintaining a consistent principle, we must also adapt flexibly as times change. It is a dialectical process to reconcile these two. Therefore, from one perspective, it may seem inconsistent or capricious. It is a process of striving to find the perfect answer.