Yun Hojung: "Economic Reconciliation Needed for Credit Recovery... Tax Discussions Including Comprehensive Real Estate Tax"

Nationwide Disaster Relief Fund Also Positive "An Economic Policy That Increases Demand"
"Real Estate and Corona Bills Are Priorities... Prosecution Reform Timing Not Decided"

Photo by Yoon Dongju

[Asia Economy Reporter Park Cheol-eung] Yoon Ho-jung, Emergency Response Committee Chairman and Floor Leader of the Democratic Party of Korea, stated that an 'economic dialogue' is needed to restore individuals in a state of credit delinquency. He also expressed a positive stance on providing nationwide disaster relief funds as a measure to stimulate demand.

Regarding real estate, he said that lowering the loan threshold will be prioritized, and that the comprehensive real estate tax (종부세, Jongbu-se) will be reviewed comprehensively along with other taxes such as property tax. He explained that the Jongbu-se will not be considered separately.

In an interview with Asia Economy on the 27th, Floor Leader Yoon said, "If herd immunity is achieved in the second half of this year, it will be necessary to revive the vitality of economic agents who have faced difficulties so far," adding, "President Moon Jae-in and the government need to present two solutions, 'inclusive quantitative easing' and 'economic dialogue,' at an appropriate time."

He continued, "We need to restore the credit of those who have gone bankrupt or fallen into credit delinquency, including those who experienced this during the COVID-19 crisis period, as well as those who cannot resume normal business and economic activities due to such histories," emphasizing, "We must open the way so that everyone can be a participant in revitalizing the economy in the post-COVID era and moving towards a new Republic of Korea."

Regarding 'inclusive quantitative easing,' he explained, "The liquidity supplied by general quantitative easing policies has tended to flow to companies with good credit or to real estate speculation, but now it should be supplied to those with poor credit and those who desperately need money." He has specifically called for an active role from the Bank of Korea. Floor Leader Yoon said, "Last year, the Bank of Korea planned to invest about 8 trillion won but only did about one-fifth of that," stressing, "A new attitude from financial authorities is necessary."

On the nationwide disaster relief funds, he said, "When meeting small business owners, they unanimously said that the second nationwide disaster relief fund was better than selective payments. Because consumers came out to the market, small business owners could increase their profits depending on their efforts," adding, "Universal support is not welfare but an economic policy that increases demand."

Regarding real estate measures, he said that all areas including taxation, supply, and loans "must be addressed," and mentioned, "The fastest conclusion can be reached on loan-related systems." The day before, Hong Ik-pyo, Policy Committee Chairman of the Democratic Party, said, "Within the party, there is a strong opinion that the Jongbu-se should be handled more strictly, but even if it is addressed, it is considered a very low priority."

In response, Floor Leader Yoon said, "Being cautious about the Jongbu-se means that other taxes will be discussed first and Jongbu-se later is not the case. Taxation should be viewed comprehensively and the Jongbu-se should not be considered separately."

As chairman of the Democratic Party's Special Committee on Prosecutorial Reform, he has pledged to completely abolish the prosecution's investigative authority and establish a Serious Crime Investigation Agency, aiming to pass reform bills within the first half of this year. However, in this interview, he said, "Gaining public consensus is a priority. (Right now) I am not sure if the timing can be set," adding, "It is necessary to explain to the public why prosecutorial and media reforms are needed and why they must be done now, and to seek their agreement. Livelihood issues must take precedence. Real estate and COVID-related bills come first."

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