President Lee Jae-myung said on the 24th (local time) regarding the recent decline in government approval ratings, 'In politics and state management, if you only make things favorable to you to gain popularity, the country's affairs won't run properly,' emphasizing the need for 'tax system reform.' While he did not mention specific provisions of the government's announced tax law amendment plan, it seems to indicate the 'tightening of standards for the capital gains tax for major shareholders,' identified as a major reason for the declining approval ratings.
President Lee unexpectedly held a 50-minute press conference aboard the presidential plane (Air Force One) en route from Japan to the United States to attend the Korea-US summit. In this venue, he remarked, 'Appropriately packaging and generously providing benefits to gain popularity might increase approval when receiving commendations filled with rhetoric, but ultimately it leads to deterioration. That cannot happen,' adding, 'The issue is like the tax system reform.' He continued, 'Who would like paying a lot of taxes? So, abolishing taxes might be popular, but ultimately, the country's finances are ruined. That cannot be allowed to happen.'
The president's remarks came amid the revelation of the government tax law amendment plan and the special pardon of former Rebuilding Korea Party's leader Jo Kuk, cited as factors for the recent decline in approval ratings. The main point is to strengthen the 'major shareholder' standard for imposing capital gains tax on listed shares from a holding amount of 5 billion won to 1 billion won per item. The government explained that this is to revive the wealth tax policy of the previous Yoon Suk-yeol administration and secure tax revenue. However, there has been significant backlash from stock investors, clashing with the new government's 'stock market activation' pledge, resulting in wavering support from centrists, according to analysts.
President Lee acknowledged, 'Of course, I admit that some members of the public hold a fairly critical view of my state management. It's impossible to deny it,' while also stating, 'Although receiving good evaluations for well-phrased statements or brief popularity is significant, what truly matters is that Korea becomes a better country, and citizens' living conditions improve for real positive change. That, I believe, will ultimately be reflected in the approval ratings.'
He also mentioned receiving numerous text messages opposing his state management. President Lee said, 'Just as you know through indicators like public opinion surveys, there is also a way for me to quickly know. I receive an enormous number of messages saying, 'Mr. President, I didn't expect this from you.' He noted, 'While these inform me of opposing opinions, if it's all part of a process to be endured, it must be withstood.'
This was the second in-flight press conference held by President Lee. Previously, in June, he had a surprise meeting with reporters aboard the plane headed to Canada for the G7 summit, the first such meeting since his inauguration.