Opposition Urges Introduction of 'Windfall Tax'... "Don't Extort Rent by Force"

Lee Jae-myung Reiterates Introduction of Windfall Tax at Supreme Council
"Win-Win Finance, Yoon's Prosecutorial Term Is Abuse of Power"
Hong Ik-pyo "Should Institutionalize, Not Revive Dictatorial Quasi-Tax"

The Democratic Party of Korea has collectively called for the introduction of a 'windfall tax' targeting the financial sector. Party leader Lee Jae-myung criticized the government, which emphasizes 'co-prosperity finance' to banks, saying, "In the special prosecution style of Yoon Seok-yeol, this is an abuse of authority," pressuring the government and ruling party, which have been lukewarm about introducing the windfall tax.

At the Supreme Council meeting held at the National Assembly on the morning of the 22nd, Lee said, "The windfall tax, introduced by Western advanced countries, is about properly using a portion of the excessive profits gained as an opportunity amid the suffering of the majority of the people for the benefit of all of us," and added, "I hope that the bill to introduce the windfall tax based on legal national consensus will be promptly negotiated."

He continued, "The president and the ruling party seem to agree, but the problem lies in the method," criticizing, "When the powerful person at the same place of business takes money as a fee, it is called a 'seat fee,' but if an agreement is reached to use part of the benefits enjoyed at that place for everyone and a system is created, that is a tax."

Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Supreme Council meeting held at the National Assembly on the 22nd. Photo by Kim Hyun-min kimhyun81@

Lee also pointed out that Financial Services Commission Chairman Kim Ju-hyun and Financial Supervisory Service Governor Lee Bok-hyun held a meeting with financial holding company chairmen on the 20th, saying, "They pressured the financial holding company chairmen by talking about social responsibility and telling them to 'pay some burden charges,'" and added, "In the special prosecution style of Yoon Seok-yeol, this is an abuse of authority." He emphasized, "Instead of extorting seat fees, taxes should be collected properly."

Floor leader Hong Ik-pyo also mentioned 'quasi-taxes' and urged cooperation for the introduction of the windfall tax. He explained, "During the era of military dictatorship and authoritarian regimes, there was something called 'quasi-taxes,' which were not taxes but similar to taxes," and added, "For example, the government pressured conglomerates and large corporations to pay money for social disasters, various national defense funds, and so on."

Hong criticized, "The problem is taxes that are not institutionalized," and said, "Because the money was forcibly collected under government coercion, there are inevitably compensatory benefits for the companies involved afterward." He emphasized, "If necessary, it is reasonable to have burden charges paid through institutional settlement. That is the rule of law and common sense."

Meanwhile, the National Assembly's Political Affairs Committee held the first subcommittee on bill examination the day before and discussed amendments to the Financial Consumer Protection Act, which focus on introducing the windfall tax. The amendment, jointly proposed by Kim Sung-joo, senior deputy chairman of the Democratic Party's Policy Committee, on the 14th, stipulates that if a financial company earns excess profits exceeding 120% of the average net interest income over the past five years, it will be required to pay a 'co-prosperity contribution' within 40% of the excess amount.

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