Jinseongjun Halts Tax Cut Talks: "Historic Tax Revenue Shortfall Requires Drastic Measures"

Opposition to Abolishing Comprehensive Real Estate Tax for Single-Occupancy Households Raised in Poll

Jin Seong-jun, the Policy Committee Chairman of the Democratic Party of Korea, urged the government to prepare “drastic measures” in response to the ongoing tax revenue shortfall following last year. Jin attracted attention by seemingly putting the brakes on discussions within the party to abolish the comprehensive real estate holding tax for owner-occupied single homes, citing a public opinion poll by the People’s Solidarity for Participatory Democracy.

Jinseongjun, the newly appointed Policy Committee Chair of the Democratic Party of Korea, is speaking at the party floor strategy meeting held at the National Assembly on the 23rd. Photo by Hyunmin Kim kimhyun81@

At the floor countermeasure meeting on the 4th, Jin criticized the government’s overall tax cut policy, saying, “The Yoon Seok-yeol administration is pushing ahead with tax cuts for the wealthy, ignoring the unprecedented relay of tax revenue shortfalls.” He stated, “According to the Ministry of Economy and Finance’s announcement on May 31, national tax revenue reached only 125.6 trillion won by April this year, which is 8.4 trillion won less than last year when a 56 trillion won shortfall occurred,” adding, “Even if tax revenue for the remaining period matches last year’s, a deficit of about 31 trillion won is expected.” Jin pointed out, “In particular, corporate tax revenue decreased by about 12.9 trillion won,” noting, “This is a 35.9% drop compared to last year,” and explained, “This is due to the government’s tax cut policies combined with a sharp decline in corporate earnings.”

Jin said, “This year, the government borrowed 32.5 trillion won from the Bank of Korea,” and criticized, “Despite the country’s treasury being depleted like this, the Yoon Seok-yeol administration only calls for tax cuts for the wealthy.” He added, “The Presidential Office recently proposed abolishing the comprehensive real estate holding tax, the Ministry of Economy and Finance suggested easing heavy taxation on multiple homeowners and inheritance and gift taxes, all of which are tax cut policies benefiting wealthy asset holders,” and warned, “Going forward, such double-faced tax policies that emphasize fiscal soundness while undermining the tax base will not work.” Jin urged, “Instead of recklessly cutting taxes and driving the country’s finances to ruin, I hope they will first present drastic measures to secure tax revenue.”

In this process, Jin also mentioned, “According to a public opinion poll released by the People’s Solidarity for Participatory Democracy, even the proposal to abolish the comprehensive real estate holding tax for owner-occupied single homes was opposed by 52% of the public, a majority.” What draws attention is that the person who raised the exemption of the comprehensive real estate holding tax for single-home owners is Park Chan-dae, the floor leader of the Democratic Party. Because of this, Jin’s criticism of the tax revenue shortfall appears to be directed at Park’s proposal to abolish the tax for single-home owners, who was sitting next to him during the meeting.

Meanwhile, Jin criticized the People Power Party for raising issues about the in-flight meal costs during First Lady Kim Jung-sook’s visit to India, saying, “They are crossing the line,” and added, “They launched a petty attack over in-flight meal costs with unclear calculation grounds.” He then urged, “The government should immediately disclose detailed calculation data on the in-flight meal costs for the India visit and also specifically disclose the overseas trip expenses of the Yoon Seok-yeol administration.”