[Reporter’s Notebook] "If Not Now, Then in May"... Policy Announcements Without Consultation Only Confuse the Public

Choo Kyung-ho, the secretary of the Planning and Coordination Subcommittee of the Presidential Transition Committee, is giving a briefing on the supplementary budget at the Transition Committee office in Tongui-dong, Jongno-gu, Seoul on March 31, 2022. Photo by Transition Committee Press Corps [Image source=Yonhap News]

[Asia Economy Sejong=Reporter Son Seonhee] "If the current government does not take action, we will do it immediately upon inauguration in May."

This sentence has recently followed various major policy announcements by the Presidential Transition Committee like a tagline. Regarding key issues such as relocating the presidential office to Yongsan, drafting the second supplementary budget (supplementary budget), and reforming real estate tax systems, the transition committee has prefaced all with the condition "if." The reason the transition committee must say this is that without any movement from the current government, there are virtually no policies that can be implemented. To be precise, the transition committee's briefings are not "announcements" but "requests."

It is unlikely that policies not pre-discussed will be pushed through unilaterally. The proposal to spend contingency funds for relocating the presidential office was "temporarily" shelved at the Cabinet meeting. It seems the cost estimation work must be redone and the public discussion process resumed. The drafting of the supplementary budget was also postponed to May amid strong opposition from Deputy Prime Minister for Economy Hong Namki.

Meanwhile, the announcement of the real estate tax reform again confused stakeholders. It was said that the heavy capital gains tax on multiple homeowners would be temporarily postponed for one year, but it is unclear whether this applies from April or May. Right after the announcement, related real estate communities were flooded with comments such as "Can I put my house on the market in April?" "If it is implemented on May 11, are they saying to sell the house within 20 days?" "Why was the period reduced from two years to one year? It seems it will be extended again later." The situation is especially sensitive as the comprehensive real estate tax imposition date (June 1) is approaching.

The Ministry of Economy and Finance, the main responsible department, has been "silent." Since this policy overturns the real estate policies previously pursued, it seems they are reluctant to take the initiative and cannot ignore the current administration's stance.

Of course, it is not only the government's fault. Since the old and new powers are in a tense conflict, it is necessary to restore the consultation stage rather than just producing uncertain policies. Even with the new government’s inauguration, considering the "minority ruling party" situation in the National Assembly, political skills are more crucial than ever, and the already creaking situation is causing public displeasure.

The current government, having pledged "cooperation," must also sincerely engage. That is the attitude of respecting the new government chosen by the people. We must not forget that even if the administration changes, the lives of the people continue.

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