Koo Yoon-chul: "No Discussions on Extra Budget Within the Government at This Time"

"Delay in U.S. Investment Bill Due to Parliamentary Schedule...
Misunderstandings Have Been Resolved"

Deputy Prime Minister and Minister of Strategy and Finance Koo Yoon-chul announced on February 2 that supplementary measures regarding the end of the temporary suspension of heavy capital gains tax for owners of multiple homes will be discussed at the Cabinet meeting on February 3. Regarding the possibility of an extra budget (supplementary budget) in March, he drew a clear line, stating, "There are currently no discussions within the government."

Deputy Prime Minister and Minister of Strategy and Finance Koo Yoon-chul (left in the photo) visited Cheonan Central Market on the 2nd to check the price and supply trends of essential goods ahead of the Lunar New Year holiday and purchased items to be delivered to social welfare facilities. On the right is Kim Jong-gu, Vice Minister of the Ministry of Agriculture, Food and Rural Affairs. Photo by Yonhap News Agency

Deputy Prime Minister Koo made these remarks while speaking with reporters after visiting Cheonan Central Market in Cheonan, South Chungcheong Province, in the afternoon to check the supply trends of essential goods for the Lunar New Year holiday.

Regarding the government's policy to end the temporary suspension of heavy capital gains tax for owners of multiple homes, he explained, "Supplementary measures will be discussed at the Cabinet meeting."

Kang Yoo-jung, spokesperson for the Blue House, earlier stated at a press briefing at Chunchugwan on the same day, "The end of the suspension of heavy capital gains tax for owners of multiple homes on May 9 is a social commitment and a matter of policy consistency," adding, "Since the President has repeatedly emphasized the end date, while it is unclear whether there will be further discussion after that, the end itself is certain."

Recently, as President Lee Jaemyung has mentioned the supplementary budget several times, rumors have been circulating in the bond market about a possible extra budget in March. In response, Deputy Prime Minister Koo made it clear that there are no discussions on a supplementary budget at this time.

Deputy Prime Minister Koo also commented on the recent sharp decline in the domestic stock market, saying, "After the nomination of the Federal Reserve Chair in the United States, the dollar suddenly strengthened, which led to this phenomenon," and added, "We will monitor the situation closely."

Regarding U.S. President Donald Trump's announcement of tariff increases and the government's response, he said, "Minister of Trade, Industry and Energy Kim Jeonggwan explained the situation to Howard Lutnick, U.S. Secretary of Commerce," and continued, "He explained that there was the Christmas holiday in December last year, a confirmation hearing for the Minister of Strategy and Finance in January, and that the government plans to proceed in earnest from February, which seems to have cleared up any misunderstandings."

Regarding investment plans in the United States, he stated, "We explained to the U.S. side that we will not delay, that we will pass the bill, and proceed step by step with the necessary procedures."

When asked whether the stance that "an annual investment of 20 billion dollars is difficult" would continue, he replied, "Investments will be made in accordance with consultations with the United States."

Deputy Prime Minister Koo also emphasized that when Minister Kim and Secretary Lutnick met, there were no issues raised regarding non-tariff matters such as Coupang or digital regulations, and said, "It was simply a message to expedite the passage of the bill."