Hong Nam-ki's 'Public' Resignation Declaration Stuns Both Ruling and Opposition Parties... Some in Ruling Party Call It a "Political Act"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki publicly expressed his intention to resign on the 3rd. This was due to taking responsibility for the conflict between the ruling party and the government over the criteria for imposing capital gains tax on stocks, which ultimately returned to the starting point.

However, the Blue House announced that President Moon Jae-in rejected the resignation letter upon submission and reaffirmed his confidence in Hong. Lawmakers from the ruling party expressed discomfort, questioning the timing of Hong’s public declaration and the moment he became aware of the President’s rejection, stating that "Deputy Prime Minister Hong took a political action."

At the afternoon plenary meeting of the National Assembly’s Planning and Finance Committee, Hong said, "Someone needs to take responsibility for the two months of back-and-forth debate," and added, "I take responsibility for maintaining the current major shareholder taxation and have today expressed my intention to resign and submitted my resignation letter."

The Ministry of Strategy and Finance had planned to lower the capital gains tax threshold for major shareholders to 300 million KRW per stock from April next year, following the 2018 amendment to the Income Tax Act Enforcement Decree. However, at a high-level ruling party-government-Blue House meeting, it was finally decided to maintain the current threshold of 1 billion KRW. Hong, who opposed this decision, expressed his intention to resign taking responsibility.

It is rare for the head of a ministry to publicly express intention to resign and announce the submission of a resignation letter during a public meeting. The ruling party expressed embarrassment at Hong’s public remarks but criticized them as irresponsible behavior.

Democratic Party lawmaker Ki Dong-min said, "Whether this is proper form or general practice, it is a very unfamiliar scene," adding, "Of course, there were many adjustments due to differences in opinion, but even if such opinions were conveyed, until the appointing authority makes a decision, it is the role of a presidential aide to quietly carry out tasks."

Ki further pointed out, "Hong’s words and actions could be misunderstood as political behavior and discourse of a seasoned politician rather than the role of a presidential aide," and said, "The form itself was highly inappropriate."

Fellow party member Yang Kyung-sook also questioned Hong, asking, "Did you hear that President Moon rejected it? Even if rejected, are you still planning to quit and leave?" She urged, "There may be dissatisfaction and concerns amid complex political situations, but since it was rejected, please work with even greater sense of mission."

Yoon Hu-deok, chair of the National Assembly’s Planning and Finance Committee and a member of the Democratic Party, criticized, "The agency head revealed his intention to resign without any questions from lawmakers during the standing committee, which significantly dampened the policy inquiries and budget review that lawmakers had prepared," adding, "This behavior does not befit the authority of the committee."

[Image source=Yonhap News]

On the other hand, the opposition party praised and comforted Deputy Prime Minister Hong for his conviction toward the administration.

Ryu Seong-geol, the People Power Party’s secretary of the Planning and Finance Committee, said, "I think taking responsibility is commendable. He must have agonized a lot internally and personally about the manner of the announcement," and praised him for steadfastly maintaining his conviction. However, seemingly mindful of the People Power Party’s opposition to lowering the capital gains tax threshold, he added, "If the current stock market situation had been examined more deeply, it might not have come to this stage," and said, "Fundamentally, there is also responsibility for preventing such a situation."

Fellow party member Yoo Kyung-joon expressed concern that Hong’s public resignation might cause controversy since he was aware of the Blue House’s reaffirmation, emphasizing, "I confirmed that the Blue House’s announcement came out at 2:48 PM." Regarding Chair Yoon’s criticism that the standing committee was dampened, he said, "I was not at all discouraged. I hope he continues to perform his duties as Deputy Prime Minister with conviction."

Justice Party lawmaker Jang Hye-young and Basic Income Party lawmaker Yong Hye-in expressed sympathy for Hong’s policy direction to lower the capital gains tax threshold to 300 million KRW and urged him to continue pushing it forward. Yong sharply criticized, saying, "This was one of the tax reforms since the Moon Jae-in administration’s transition team period, but it seems the ruling party and the main opposition party are trying to put all the responsibility on economic bureaucrats as if they were unaware."

However, People Power Party lawmaker Chu Kyung-ho criticized, "Even if you have feelings, you should swallow them and throw them after the National Assembly ends. This is not the behavior expected of a Deputy Prime Minister," and said, "Budget review starts tomorrow, but if you act publicly like this, people will say ‘He has already left in his heart’ or ‘The budget executor for next year is different,’ so can there be serious questioning?"

In response, Deputy Prime Minister Hong said, "As maintaining the 1 billion KRW threshold became a foregone conclusion, I thought they would keep asking the government’s position today, tomorrow, and the day after. From that perspective, I could not endure going on without saying anything." He emphasized that he would not shirk responsibility, saying, "Since I prepared the budget, I will faithfully explain and undergo review." When asked if he would quit despite the Blue House’s rejection, he added, "Acting that way is not responsible. I will do my best to perform my duties until the last day a successor arrives."

Regarding the ruling party’s criticism of a "political move," he strongly denied it, saying, "The word ‘politics’ cannot be applied to me."

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