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"

Koo Yoon-chul, Deputy Prime Minister and Minister of Strategy and Finance, announced on February 2 that supplementary measures regarding the expiration of the capital gains tax exemption for owners of multiple homes will be discussed at the Cabinet meeting on February 3. Regarding the possibility of a supplementary budget in March, he drew a clear line, stating, "There are currently no discussions taking place 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 during an interview with reporters after inspecting the supply and demand trends of essential goods for the Lunar New Year holiday at Cheonan Central Market in Cheonan, South Chungcheong Province, that afternoon.

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

Kang Yoo-jung, spokesperson for the Blue House, said earlier that day during a press briefing at Chunchugwan, "The expiration of the exemption for owners of multiple homes on May 9 is both a social commitment and a matter of policy consistency," adding, "As the President has been consistently emphasizing the end date, while it is uncertain whether other discussions may be possible afterward, the expiration itself is definite."

Recently, as President Lee Jaemyung has mentioned the possibility of a supplementary budget several times, rumors of a supplementary budget in March have been circulating in the bond market. In response, Deputy Prime Minister Koo clarified that, as of now, there are no ongoing discussions about a supplementary budget.

Regarding the recent sharp decline in the domestic stock market, Deputy Prime Minister Koo commented, "This phenomenon occurred as the US dollar suddenly strengthened following the nomination of the Federal Reserve Chair," and added, "We will monitor the situation closely."

Concerning US President Donald Trump's announcement of tariff increases and the government's response, he stated, "Minister of Trade, Industry and Energy Kim Jeonggwan explained the situation to US Secretary of Commerce Howard Lutnick," and added, "He clarified that there were the Christmas holidays last December, a confirmation hearing for the Minister of Planning and Budget in January, and that the process would begin in earnest from February, which seems to have resolved any misunderstandings."

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

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

Deputy Prime Minister Koo also conveyed that during the meeting between Minister Kim and Secretary Lutnick, there were no issues raised regarding non-tariff matters such as Coupang or digital regulations, emphasizing, "The only message was to expedite the processing of the bill."