Han Duck-soo: "Taeyoung Construction Management Must Make Painful Decisions... Positive on Abolishing Financial Investment Tax"

Abolish Financial Investment Tax, Move Beyond Wealth Tax Cut Ideology
Suppress Public Utility Fee Increases but Realistic Adjustments Inevitable
Lee Jae-myung Hospital Visit, Should Be Done If Necessary

Prime Minister Han Duck-soo is speaking at the extraordinary Cabinet meeting held at the Government Seoul Office in Jongno-gu, Seoul, on the morning of the 5th. [Image source=Yonhap News]

Prime Minister Han Duck-soo emphasized that Tae Young Construction, which applied for a workout (corporate improvement process) due to an excessive real estate project financing (PF) business, must undergo "the painful process of the management cutting their own flesh." Amid criticisms that the self-rescue plan submitted by Tae Young Construction is insufficient, Prime Minister Han's remarks are interpreted as demanding more responsible actions from the company's owners.

On the 7th, appearing on KBS Sunday Diagnosis Live, Prime Minister Han responded to questions about Tae Young Construction by saying, "Restructuring or workouts inevitably involve creditors granting support such as deferring principal and interest repayments," adding, "From the perspective of financial institutions that lent the money, if they have made such efforts, the management must endure the painful process of cutting their own flesh to reach a national consensus."

Prime Minister Han predicted that the real estate PF insolvency issue would not spread further. He stated, "We have been closely monitoring and verifying real estate PF since last year," and added, "These issues were all anticipated, so I believe the real estate PF problem will not pose a significant risk to our financial system."

Regarding the government's push to abolish the financial investment income tax (FITS), Han said, "If the entire stock market is revitalized, it will positively affect many people who own a small amount of stocks," and emphasized, "We need to move beyond the somewhat ideological and value-biased notion that this is a tax cut for the wealthy." He continued, "Of course, there will be debates about whether the tax applies to those who earn a small investment profit, but the government believes it is right to remove factors that discount the stock market from a macro perspective."

On price stabilization, he said, "If fiscal management is lax, it immediately affects prices, so we will strive to ensure fiscal management is not too loose," adding, "To stabilize food costs, we will investigate price collusion and cartels of certain food items through the Fair Trade Commission and, if necessary, improve distribution structures."

Regarding this year's government plans to raise public utility fees such as electricity and gas, he explained, "We will try to suppress increases as much as possible," but added, "The raw material prices for public utilities have not yet stabilized globally. For unavoidable public utility fees, we will try to suppress increases as much as possible but inevitably proceed with some adjustments."

During his visit to Busan, Lee Jae-myung, the leader of the Democratic Party of Korea, who was stabbed with a weapon, was transported to Seoul National University Hospital in Jongno-gu, Seoul on the 2nd. [Image source=Yonhap News]

Regarding plans to visit Lee Jae-myung, leader of the Democratic Party of Korea, who was hospitalized after a stabbing attack, Prime Minister Han said, "If necessary, I will certainly do so," and expressed, "It is very unfortunate, and I believe such situations should never happen."

On the recent swift veto exercised by the government and the presidential office against the so-called double special prosecutor law, Han said, "I have long held the view that this legislation had political motives," adding, "When it passed the National Assembly and came to the government, the government's position was very firm from the start." He continued, "Therefore, the decision on this matter was made quickly, and I think it will help if the National Assembly reconsiders it."

Regarding North Korea, which has been escalating provocations, Han predicted significant tensions this year. However, he emphasized, "I believe that peace on the Korean Peninsula should not be determined by the conditions set by North Korea," and stressed, "We must strengthen South Korea's deterrence by cooperating with the United States, partner countries, and nations that share global values."

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