Kang Hoon, Deputy Minister of the Presidential Office, said on the 19th regarding the 'Strengthening the Standards for Capital Gains Tax on Listed Shares' included in the first tax reform proposal of Lee Jae-myung's government, 'If we say there is room for adjustment, the market will tremble.' He added, 'The Presidential Office intends to observe this discussion further.' This statement came amid criticisms within the ruling party that reverting the tax standards from 5 billion won to 1 billion won per stock would hinder the revitalization of the stock market.
On the same day, Deputy Minister Kang noted at a press briefing, 'Isn't the current situation that the government announces something, and soon after the party says, 'That doesn't seem right'? The Presidential Office must choose sides at such times, either the party's or the government's. The people's side should be the stance of the Presidential Office. We are monitoring the discussion.'
He further remarked, 'If we change our position just a week after the announcement, the media will criticize it as a 'poor government,' and if we do not act as the party demands while the public has voiced their opinions, we will face criticism for ignoring that as well.' He stated, 'For now, I believe it is best to take our time and make a judgment.'
◇ Lee mentioned 'a taste test'... Kang Hoon 'will announce supply measures promptly'
Regarding real estate measures, he stated, 'We plan to swiftly announce supply measures so that the market can be managed stably.' This aligns with President Lee Jae-myung's remarks during a press conference a month after his inauguration, where he referred to the 6-27 loan regulations as 'a taste test' and hinted at additional demand suppression measures. Previously, the Financial Services Commission announced a high-intensity policy that limits housing mortgage loans in the metropolitan area to 600 million won and blocks loans for those owning more than two dwellings.
Deputy Minister Kang emphasized, 'The real estate market reacts very sensitively to any remarks made by responsible government officials, so it's quite delicate.' He referenced the 6-27 measures, adding, 'The media asks questions out of curiosity, but those who utilize that information often have very different intentions,' emphasizing that a responsible person in the Presidential Office must be even more cautious.
◇ 'Additional issuance of Government Bonds is a predetermined answer'
He also mentioned the necessity for additional issuance of Government Bonds. Deputy Minister Kang commented on the expansionary fiscal policy of the Lee Jae-myung government, saying, 'I don't believe the economy can be invigorated solely through fiscal measures, but it's also not reasonable to think we can revive the economy without considering fiscal resources.' When asked if there are plans to issue Government Bonds for securing funding, he responded, '(If not Government Bonds), what money would we have for additional fiscal expenditure?' He concluded, '(Issuing Government Bonds) is the predetermined answer. We have no choice but to consider it.'
Deputy Minister Kang stated, 'Since this involves the debt ratio, we must be cautious,' explaining that 'If we incur debt now, the debt ratio will significantly increase in a few years.' He added, however, 'When the economy improves, paying off debt can become easier,' emphasizing that 'We must consider this comprehensively.' However, when asked about the possibility of once again formulating a supplementary budget, he replied, 'There has been no discussion regarding that whatsoever.'