Ruling Party "Abolish Spousal Inheritance Tax" vs Opposition "50 Trillion Won National Fund"

Policy Showdown Amid Early Presidential Election Speculation
Announcements Equivalent to Presidential Pledges

The People Power Party and the Democratic Party of Korea have engaged in a policy showdown over economic issues such as artificial intelligence (AI) and the Arctic shipping route. With the possibility of an early presidential election being discussed, policy announcements equivalent to presidential pledges, including the complete abolition of spousal inheritance tax and the creation of a 50 trillion won national fund for advanced industries, are also continuing.

On the 6th, Kwon Young-se, the emergency committee chairman of the People Power Party, announced at the emergency committee meeting held at the National Assembly, "We will completely abolish the spousal inheritance tax." Chairman Kwon explained, "Inheritance between spouses who have built wealth together is not an intergenerational transfer of wealth," adding, "Most advanced countries such as the United States, the United Kingdom, and France do not tax spousal inheritance."

Kwon Young-se, Emergency Response Committee Chairman of the People Power Party, is speaking at the Emergency Response Committee meeting at the National Assembly on the 6th. 2025.3.6 Photo by Kim Hyun-min

On the same day, the People Power Party leadership, including floor leader Kwon Seong-dong and policy committee chairman Kim Sang-hoon, held an 'On-site Meeting for AI G3 Leap' at the LG AI Research Institute in Seoul in the morning. This was to listen to the difficulties faced by industry insiders in building industrial infrastructure after Lee Jae-myung, leader of the Democratic Party, called on the 4th for AI companies to be nurtured through investment and equity acquisition by sovereign wealth funds or national funds. Earlier, Floor Leader Kwon criticized, "The Democratic Party has shown extreme anti-business behavior such as deleting the semiconductor law’s exemption clause for the 52-hour workweek, opposing inheritance tax cuts, pushing through the Yellow Envelope Act, and demanding 30% national ownership of K-NVIDIA shares."

The Democratic Party also responded with economic policy moves. On the 6th, Jin Seong-jun, policy committee chairman of the Democratic Party, supported Leader Lee by stating at the National Assembly, "All economic actors, including companies and pension funds, will create a national participation fund of at least 50 trillion won and invest intensively in companies or bonds." Jin especially emphasized, "Artificial intelligence (AI) is a core strategic industry critical to the nation’s survival, regardless of party lines or political ideology."

On the same day, Leader Lee visited the Busan Port Authority’s new terminal office and held an on-site meeting under the theme of ‘Pioneering the Arctic Shipping Route for the Leap to a Maritime Power.’ Leader Lee held talks with Busan Mayor Park Hyung-jun and discussed policy issues including the Arctic shipping route.

Additionally, the Democratic Party is reviewing the top 10 policy demands delivered by the Korea Economic Association (HanKyungHyup). The 10 tasks derived by HanKyungHyup consist of measures to revitalize the economy amid prolonged economic stagnation, including △expanding the scope of integrated investment tax credits (including land, buildings, and aircraft assets) and △extending temporary investment tax credits (including large corporations, extended until 2026).

A HanKyungHyup official explained, "We proposed measures that can promote corporate investment, which is necessary." A Democratic Party policy committee official said, "There is a need to expand employment tax benefits or design them precisely," but added, "However, I think extending the sunset clause is not immediately helpful for youth employment."

Ryu Jin, Chairman of the Korea Economic Association, is speaking at the "Democratic Party-Korea Economic Association Economic Revitalization Livelihood Economy Meeting" held at the National Assembly on the 5th. 2025.3.5 Photo by Kim Hyun-min