Deputy Prime Minister Lee Says Pension Funds Permitted to be Invested in Stocks

The government is again pushing plans to amend related laws approving stock investment of pension funds, and is planning to turn in a revision to lower the special excise tax rate to the National Assembly

Meanwhile, Uri Party Chairman Chung Dong-young provoked controversy by saying, “If necessary, we will support drawing up additional budget measures after the opening of the 17th National Assembly.”

Deputy Prime Minister and Finance-Economy Minister Lee Hun-jai met with Chairman Chung, who came to the Gwacheon Government Complex yesterday, and said “[When the 17th National Assembly opens], there are a couple of matters to settle.”

Related to this matter, Finance-Economy Vice Minister Kim Kwang-lim explained that “Minister Lee meant that plans to revise the basic fund management law to permit overall stock investments of pension funds will be reconsidered, and amendments to lower the special excise tax rate will be pushed.”

On Chairman Chung’s request to extend the 100 percent supplement of the oil price subsidy of liquefied petroleum gas (LPG) used as fuel for taxis for another year until June 2005, Minister Lee said, “We will consider a way to bring less additional burdens for taxi drivers.”

On the controversial issue of imposing additional taxes on apartment security services, the Finance-Economy Minister said that “We will take positive consideration on repealing the additional tax levy.”

Finance-Economy Ministry officials replied that “the burden for the additional tax levy is not on the residents but the security guards, and was confirmed after giving consideration to the fact that their average wages were reduced to 680,000 won a month from 700,000 won. If the additional tax for apartment security tax is exempted, it is estimated that an annual 90 billion won in tax revenues will be decreased.”

Relating to supporting farms damaged by the heavy snow, Minister Lee said, “I instructed the Agriculture-Forestry Ministry to give support as soon as possible, and it is my wish to do so within this month.”

In reference to the real-name system for reception expenses over 500,000 won, he said, “As the National Tax Service Commissioner has already announced that if there is evidence that reception expenses were used for business matters and not privately, it will be acknowledged, and I would like to urge again for this principle to be properly kept to.”

At the gathering that day with Minister Lee and Chairman Chung, many countermeasures for “stabilizing the common people” were discussed, and controversy that “the party-government is initiating generous policies because of the impeachment motion’s passage” is rising.

Chi-Young Shin higgledy@donga.com