Hong Nam-ki "Taking Responsibility for Controversy over Stock Transfer Tax Criteria, Tendering Resignation"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, has expressed his intention to resign and submitted his resignation letter. This is to take responsibility for the conflict between the ruling party and the government over the criteria for imposing capital gains tax on stock transfers, which ultimately reverted to the starting point.

On the 3rd, at the plenary meeting of the National Assembly's Planning and Finance Committee, Deputy Prime Minister Hong said, "I thought someone needed to take a responsible stance regarding the ongoing debate for two months," adding, "I expressed my intention to resign and submitted my resignation letter."

The criteria for imposing capital gains tax on stock transfers was finally decided to maintain the current threshold of 1 billion KRW through a high-level meeting between the ruling party, government, and the Blue House. Hong is known to have expressed opposing views.

He explained, "The current threshold is 1 billion KRW, but the enforcement decree was already amended in February 2018 to lower it to 300 million KRW starting next March. From the government's perspective, it was necessary to follow the previously announced policy for fairness in taxing asset income, but considering the global situation and increased economic uncertainties, this was taken into account."

Regarding criticism that his move could be interpreted as a political act, he dismissed it by saying, "The word 'politics' is something that cannot be associated with me," and added, "To proceed with the 1 billion KRW threshold as if nothing happened is not the duty of a public official."

When Democratic Party lawmaker Ki Dong-min criticized him as "extremely irresponsible," Hong responded, "That is the lawmaker's personal judgment," and said, "From my personal judgment, I have thought deeply, and I believe this (expression of intention to resign) is a more responsible stance," refusing to change his position.

However, the Blue House stated that the President immediately rejected the resignation letter upon submission and reaffirmed his confidence in Hong.

This content was produced with the assistance of AI translation services.