President Lee Jae-myung said on the 17th, "Real estate tax issues are as much as possible a last resort, but if we must use (a tax increase policy), then we should use it." Presiding over a Cabinet meeting at the Government Complex Sejong that day, Lee said, "Taxes are like a nuclear bomb in wartime."
He went on, "How we will handle the real estate issue depends heavily on finance," adding, "Real estate in Korea has turned into an object of speculation and investment, and the factor that has had the greatest impact is finance." He said, "As it has become fashionable to borrow other people's money to grow one's asset, people who don't do that feel like they are losing out," adding, "We absolutely must get this under control somehow. The most important thing among them is finance."
Lee said, "The Ministry of Land, Infrastructure and Transport, which oversees real estate, must do well, and we must also handle supply measures and the (Ministry of Economy and Finance's) tax matters well," adding, "Taxes are as much as possible a last resort." He also said, "We should not use them recklessly, but nonetheless, if we must use them as the final measure, then we should, so please prepare well," and added, "Each ministry should prepare thoroughly, anticipating even the worst-case scenario."
◇"war supplementary budget" gains speed… "We cannot avoid income support policies"
He also called for speeding up the formulation of a "war supplementary budget" (supplementary budget) to respond to high inflation stemming from the Middle East situation. Lee said, "In the end, we probably cannot avoid income support policies," and directed that more aid be allocated to regions outside the Seoul metropolitan area. Saying that "emergency measures" are needed for region-led balanced growth, he ordered a complete overhaul of the preliminary feasibility study (pre-feasibility study) and private investment systems to prioritize the regions.
He added, "To support vulnerable groups and exporting companies, please formulate the war supplementary budget swiftly," and said, "We ask the National Assembly to review it as quickly as possible and make multifaceted efforts so the war supplementary budget can be executed promptly." The government is speeding up budget formulation with the goal of submitting it to the National Assembly at the end of this month and executing it in the middle of next month.
Lee said public participation is needed amid high oil prices and said the government will draw up demand-reduction measures such as odd-even driving restrictions by fives or tens, and will also pursue steps including export controls and expanding the operation of nuclear power plants. He added, "As a midterm measure, we must convert as swiftly as possible from fossil fuel-centered energy resumption to a renewable energy-centered approach."