The Democratic Party of Korea and the government agreed on a plan to cut greenhouse gas emissions by 53% to 61% from 2018 levels by 2035. To boost stock market dividends, they decided to push to further ease the separate taxation on dividend income from the government's 35% to the 25% proposed by Democratic Party lawmakers.
The party and the government also decided to institutionalize telemedicine as a regular program and, to foster national university hospitals as regional base hospitals, to pursue legislation during the regular session to transfer jurisdiction to the Ministry of Health and Welfare. Along with this, while discussing measures to prevent heavy snow damage, they decided to conduct inspections and reinforcement for facilities with high snow load risks, such as traditional markets.
Park Su-hyun, the Democratic Party's chief spokesperson, said this in a briefing on the results of the high-level party-government consultative meeting held at the National Assembly on the 9th. The party and the government first formed a consensus to set the "2035 national greenhouse gas reduction target" (2035 NDC) to reduce by 53% to 61% from 2018 levels. Chief spokesperson Park said, "This is the result of comprehensively considering the Intergovernmental Panel on Climate Change (IPCC) recommendations, the Constitutional Court's decision, the burden on future generations, and domestic industrial conditions, and of gathering opinions from public hearings," and added, "The government eased the reduction burden on the industrial institutional sector by considering the industrial structure conditions centered on carbon-intensive manufacturing, the feasibility of reduction technologies, and global competitive conditions."
Earlier, the government presented two options to reduce greenhouse gas emissions by 50% to 60% and 53% to 60% from 2018 levels. The target set by the party and the government that day is higher than these. Chief spokesperson Park said, "There is a need to proclaim to the world that our government's implementation plan for reductions is bold and that the will is strong." On concerns from industry, Park said, "Even if the target is somewhat excessive, when you set a target and try to move toward that target, the burden placed on future generations can be reduced; that perspective was considered evenly and comprehensively in the decision."
The party and the government decided to prepare additional support measures to lower the burden on industry. Considering the industrial structure conditions centered on manufacturing with high carbon emissions and the feasibility of reduction technologies, they plan to ease the reduction burden on the industrial institutional sector. They also said they would establish the "KGX green transition strategy" to support Korean corporations' transition to decarbonized industries and to foster green industries, and discuss directions to minimize the impact on existing industries and workers and local communities, such as coal power plants and internal combustion engine car manufacturers. The final 2035 NDC will be submitted to the United Nations next week after deliberation and resolution by the presidential 2050 Carbon Neutrality and Green Growth Commission and the Cabinet meeting this week.
As for the top rate of separate taxation on dividend income, they decided to proceed with discussions to further ease it from the government's 35% to the 25% proposed by Democratic Party lawmakers. Chief spokesperson Park explained, "Regarding measures to enhance the effectiveness of separate taxation on dividend income, we agreed on the need to devise a reasonable adjustment of the top rate so that it can maximize the effect of activating dividends without significantly affecting tax revenue," adding, "The specific rate level will be decided through discussions during the regular session."
In the government plan, the top rate was set at 35%, but within the party, opinions were raised that the top rate should be further lowered to support achieving the national task of reaching KOSPI 5000 and to increase the system's effectiveness. Presidential chief of staff Kang Hoon-sik said in opening remarks at the high-level party-government consultative meeting that day, "Over the past two months, the public, corporations, and the financial market have presented and discussed various opinions, including the tax rate applied when separate taxation on dividend income is implemented," adding, "The party, the government, and the presidential office need an attitude that responds to the opinions presented by the public."
In addition, for vulnerable groups, the party and the government decided to provide support for heating costs and winter items by 10 types, and the government decided to extend the operation of cold-wave shelters during nighttime vulnerable hours.