Proactive Stance on Comprehensive Real Estate Tax... "Creating Unnecessary Conflict"
"Pension Reform Must Be Settled in This Regular National Assembly"
Former Democratic Party leader Lee Jae-myung, who is challenging for re-election as party leader, has taken a progressive stance on the financial investment income tax (Geumtu Tax) and comprehensive real estate holding tax (Jongbu Tax). This marks a shift from the past progressive camp's emphasis on wealth redistribution through taxation. It is interpreted that Lee, aiming for the presidency, is proposing policies acceptable to the conservative camp in order to capture the centrist voters.
Lee Jae-myung, former leader of the Democratic Party of Korea, is declaring his candidacy for party leader at the party headquarters in Yeouido, Seoul, on the 10th. Photo by Kim Hyun-min kimhyun81@
At a press conference for his party leader candidacy held on the 10th at the party member zone of the central party office in Yeouido, Seoul, Lee said, "Basically, the Geumtu Tax is necessary and is a system that replaces transaction taxes, so I am cautious about abolishing it altogether," adding, "I think we need to carefully consider the timing of its implementation." The Geumtu Tax is levied on annual income exceeding 50 million won earned from investments in stocks, bonds, funds, and derivatives. It was scheduled to be implemented from January next year, but the Yoon Seok-yeol administration has announced its intention to abolish the tax.
Lee cited the sluggish stock market performance as the reason for postponing the Geumtu Tax. He said, "Stock markets in other countries continue to grow and their stock indices rise, but only the Korean stock market is moving in the opposite direction," adding, "Korea is one of the few countries where the stock index has fallen, so is it really right to implement the Geumtu Tax as planned?"
He also hinted at a review of the Jongbu Tax. The Jongbu Tax is a tax imposed on those who own real estate above a certain amount, and the Yoon Seok-yeol administration is also considering its abolition. Lee said, "It seems that the Jongbu Tax has unnecessarily caused excessive conflict and resistance," adding, "It is time to fundamentally review it." He further emphasized, "While the system has its original goals and purposes, if the conflicts or frictions caused by the system exist, it is necessary to check them once."
However, he announced a plan to pass pension reform, which was stalled in the 21st National Assembly, within this year. By pushing pension reform in this regular session of the National Assembly, he intends to pressure the ruling party and government, who opposed the reform, by emphasizing the need for structural reform. Lee said, "Issues debated in the political arena have different interests and opinions, so in severe cases, conflicts are inevitable," but added, "Even if conflicts arise, we must do what needs to be done for the entire community." He continued, "It would be good to settle the principal issues before or during the regular session of the National Assembly," emphasizing, "Structural reform issues should be discussed as the next matter."
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