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Parties demand tax probe of private loan sharks and funds

Parties demand tax probe of private loan sharks and funds

Posted October. 26, 2000 19:38,   


Following the inspection targeting the Dongbang Mutual Savings and Finance¡¯s illegal loan case, both ruling and opposition lawmakers belonging to the National Assembly¡¯s Finance and Economy Committee demanded that the Seoul and central district tax administration implement a tax probe into private loan sharks and private funds.

Rep. Lee Han-Koo of the opposition Grand National Party called for the probes as private loan sharks and false venture companies are making illegal gains by establishing private funds, as the Dongbang incident demonstrated.

Millennium Democratic Party lawmaker Kang Woon-Tae requested the establishment of a special investigation team as a large-scale outflow of illegal funds is anticipated when foreign exchange is liberalized next year. He also asked whether there are plans to formulate a scheme to uncover sources of tax from the outflow of capital.

At the inspection of the National Health Insurance Corporation by the health and social welfare committee, both parties remarked that the corporation¡¯s financial situation is near a state of insolvency as reserves have dried up. Furthermore, there was criticism that the NHIC is bent only on increasing medical insurance fees.

At the inspection of the Korea Water Resources Corporation by the construction and transportation committee, GNP lawmaker Lee Jae-Chang pointed out that a total of 11.2 billion won in taxpayers¡¯ money (design cost: 5.5 billion won, environmental evaluation cost: 2.5 billion won, administrative expenses: 3.2 billion won) was squandered after the Yongwol multi-purpose dam project was cancelled.

Song In-Soo issong@donga.com