Lee Hyeong-il, nominee for deputy prime minister for the economy and Minister of the Ministry of Finance and Economy, said on the 13th that "the proactive role of fiscal policy is needed to respond to external uncertainty and the structural problems of our economy."
In materials the Ministry of Finance and Economy submitted to the National Assembly for his confirmation hearing, the nominee said he "agrees with the view that institutional mechanisms are needed to enhance the sustainability of public finances," and stated accordingly.
The nominee said, "It is also necessary to consider that countries around the world are deferring or easing the application of fiscal rules after COVID-19." He added, "A proactive fiscal role and securing the sustainability of public finances can be pursued in a balanced way through performance-centered fiscal management."
The nominee said, "If I take office as deputy prime minister, I will make the rebound in potential growth and the reduction of polarization the top priorities, strengthening interministerial cooperation to increase the speed and momentum of policy." To overcome polarization in particular, he said, "We will actively pursue structural reforms across the economy, industry, and society at the same time."
On the "financial investment income tax," which imposes taxes on profits earned from stocks, he said, "We will adjust related systems in response to changes in financial markets and industries, and establish a fair and efficient financial taxation system." Regarding taxation of virtual assets starting in January next year, the nominee said, "Given that in the case of stocks, both capital gains taxes (large shareholders, overseas, unlisted) and transaction taxes are currently imposed, taxing virtual assets as well would help enhance fairness." He said, "Specific taxation standards will be announced within the year through a National Tax Service notice, and we will ensure there are no difficulties for the taxpayer in filing."
On inheritance and gift taxes, he said, "There are positions that tax relief is needed in light of high inheritance tax rates in international comparison, and opposing positions that tax relief is not appropriate given the deepening asset inequality and the need to enhance tax fairness." The nominee added, "This is an issue that requires in-depth discussion based on collecting diverse opinions and reaching social consensus, taking into account fiscal conditions and beneficiaries."
On corporate taxes, he said, "We will continue growth-friendly tax support to enhance national competitiveness, including fostering future growth engines and advanced industries and supporting region-led growth," adding, "To expand a stable revenue base, we will overhaul tax exemptions and reductions with low effectiveness, reflecting changes in economic and industrial conditions."
The confirmation hearing for the nominee will be held on the 15th.