President Lee Jae-myung marked his 100th day in office with a press conference and signaled that he would keep the current criteria for defining a large shareholder subject to capital gains tax on stock transfers. On prosecution reform, he said the government would take the lead in preparing follow-up measures over the next year, and on the U.S.-Korea tariff talks, he said, "We will not make decisions that go against the national interest," adding the negotiations will need to continue for quite some time.
On the 11th, at the state guesthouse of the Blue House, Lee held a news conference to mark his first 100 days in office under the theme "100 days for recovery, growth for the future." In his opening remarks, Lee said, "If I were to briefly define the past 100 days, I would call it 'a time for recovery and normalization,'" and emphasized, "The remaining 4 years and 9 months will be 'a time for leap and growth.'"
The press conference featured a series of questions on recent pending issues. A question was also raised about the government's tax law revision that would tighten the threshold for large shareholders subject to capital gains tax on stock transfers from the current 5 billion won to 1 billion won.
Lee said, "The stock market moves on sentiment, and if this would hinder the new administration's economic policy of revitalizing the stock market, there is no need to insist on it," adding, "The opposition is also calling for keeping the 5 billion won threshold, and the ruling party thinks it's better to leave it as is, so I don't think we need to tighten it to 1 billion won."
He added, "It seems people view (the large-shareholder threshold for capital gains tax) as a kind of test of the will behind the stock market revitalization policy," and said, "The estimated tax shortfall is about 200 billion to 300 billion won, so there seems to be no need to stick to (1 billion won) to the end. I plan to leave it to the National Assembly's discussion." As both the ruling and opposition parties are calling for keeping the current 5 billion won threshold, Lee's comment about leaving it to the National Assembly is read as signaling he intends to maintain the current level.
He reiterated his intention to severely punish stock price manipulation. Lee said, "We need to minimize distrust in the domestic stock market. We intend to make it clear that those who engage in stock price manipulation will be ruined by publicly flagging it and imposing very strict punishment," adding, "Currently, when stock manipulation occurs, only the gains are confiscated, but we will also confiscate the principal invested in the manipulation."
On follow-up measures to the U.S.-Korea tariff negotiations, he said, "We will never make decisions that run counter to the national interest. We will not engage in any negotiations that deviate from rationality and fairness," and added, "We will need to keep negotiating for quite some time." Lee said, "What is visible on the surface may be rough, radical, irrational and nonsensical, but the final conclusion will be rational," adding, "I recall saying earlier that we had just crossed a small hill, but there will be countless hills to cross until the end of my term."
Regarding the recent detention of Korean workers at the Hyundai Motor–LG Energy Solution joint venture plant in Georgia, United States, he said, "From our perspective, the plane takes off around 1 a.m. tomorrow (the 12th) and returns to Korea around tomorrow afternoon."
Lee also expressed regret over the U.S. response. He said, "This could have a significant impact on future direct investment in the United States, and we are negotiating to ensure that visa issuance related to the United States and U.S.-related investment is handled normally," adding, "In the current situation, local direct investment in the United States would be something our corporations would be very hesitant about."
Toward the end of the news conference, he also directed that the inheritance tax deduction cap be raised to 1.8 billion won. Asked about plans to revise the inheritance and gift tax, Lee said, "I cannot agree with broadly lowering inheritance taxes," adding, "However, I think it is necessary to raise the inheritance tax deduction cap."
The current inheritance tax deduction cap is 1 billion won, which combines a basic deduction of 500 million won and a minimum spousal deduction of 500 million won. The Democratic Party of Korea has drawn up a plan to raise this cap to a total of 1.8 billion won by increasing the basic deduction to 800 million won and the minimum spousal deduction to 1 billion won. Lee told working-level officials, "Let's get this done this time," and Presidential Chief of Staff for Policy Kim Yong-beom said, "I will consult with the policy committee."
On building new nuclear power plants, he said there is no land to build them and that Korea should go with renewable energy. Lee said, "Applying artificial intelligence and setting up data centers requires enormous power, but it takes 15 years to build a nuclear plant and there is no land to build on," adding, "We need massive power right now, and the energy systems that can supply that power the most quickly are renewables like solar and wind."
He expressed a negative view of news reports that the floor leaders of the ruling and opposition parties had agreed the previous day that the People Power Party would cooperate on a government reorganization plan on the condition that the investigation periods for the three special prosecutors on insurrection, Kim Keon-hee, and the Marine killed in the line of duty would not be extended. This came in response to a question about bipartisan cooperation.
The People Power Party argued the previous day that the agreement between the ruling and opposition floor leaders was made in coordination with the presidential office, and criticized Democratic Party leader Jeong Cheong-rae for overturning the deal, saying he had rejected the agreement between the presidential office and the floor leaders. In response, Lee said, "I did not know about (the agreement), nor do I actually want it to happen," and asked in return, "How can you trade reorganizing the government with making the truth about the insurrection clear, holding those responsible to account, and ensuring that a loyalist coup can never happen again?"
He added, "Not being able to reorganize the government doesn't mean we can't work; it's just a bit inconvenient," and said, "Making the truth about the insurrection clear, thoroughly uncovering the facts, and holding people accountable so they can never even dream of it again is an essential value of a democratic republic."
He said follow-up measures on prosecution reform would be carried out under the government's lead. Lee said, "If you're afraid of maggots, does it make sense to throw out the crock?" adding, "Those who commit crimes should be punished, and we will spend the next year finding the optimal plan to ensure that people who have not committed crimes are not unfairly punished."
Lee said, "We have decided to separate investigation and indictment, and to place the (Serious Crimes Investigation Agency) under the Ministry of the Interior and Safety, so the key now is to ensure, in more detail, that investigations do not become hollow," adding, "Solving this requires very meticulous safeguards and careful review." He continued, "We must exclude emotion and examine this process in a highly logical, meticulous, and professional manner," and said, "Let the government take the lead and hear from experts, both ruling and opposition parties, victims, and the prosecution to remove the problems."
He also said he believes the special tribunal on insurrection being pushed by the Democratic Party is not unconstitutional. In response to claims that the special tribunal on insurrection is unconstitutional, Lee said, "How is that unconstitutional?" and stressed, "The sovereign will of the people is most important."