Deputy Prime Minister Hong Nam-gi's Resignation Offer... President Moon Jae-in Rejects, 'Reconfirmation' (Comprehensive)

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance

[Asia Economy Reporter Kwangho Lee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, tendered his resignation on the 3rd, but President Moon Jae-in rejected it.

On the same day, Hong appeared before the National Assembly's Planning and Finance Committee and responded to a question from Democratic Party lawmaker Jeong Il-young regarding the major shareholder requirements for capital gains tax on stock transfers, stating, "I felt a responsible attitude was necessary regarding the two months of debate, so I submitted my resignation today, taking responsibility for maintaining the current system."

He continued, "In the current situation of increasing global economic uncertainty, the high-level ruling party and government decided to maintain the 1 billion KRW threshold as it is," adding, "I expressed opposing views, but at a broader level, it was decided to keep it at 1 billion KRW, so it will remain as it is."

Following Hong's resignation announcement, the Blue House reported that President Moon Jae-in immediately rejected it.

Blue House spokesperson Kang Min-seok explained, "Hong Nam-ki tendered his resignation to the President immediately after today's Cabinet meeting, but the President promptly rejected it and reaffirmed his confidence in him."

Previously, the government decided in 2018 to lower the stockholding threshold for major shareholders subject to capital gains tax from 1 billion KRW to 300 million KRW starting next year. Major shareholders as of the end of this year who sell their stocks after April next year would have to pay 22-23% of their profits as capital gains tax. As public opinion worsened, the Ministry of Economy and Finance changed its stance, stating it would strengthen the threshold from 1 billion KRW to 300 million KRW but change the family aggregation rule to individual aggregation, while the ruling party demanded a 'restoration' of the major shareholder requirements.

Hong consistently expressed opposition to the political demands. However, on the 1st, the high-level ruling party and government held a meeting and concluded to maintain the major shareholder threshold at the current 1 billion KRW.

Regarding the background of his resignation, Hong said, "I thought it was not the duty of a public official to say 'we will go with 1 billion KRW' as if nothing happened," adding, "Someone has to take responsibility, and since such an opinion started within the Ministry of Economy and Finance, I thought it was right for me to take responsibility."

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