Government and Ruling Party Agree On Revised Bill

The government and the administrative party agreed to lower the reduction gap of property tax rates, that are set at a maximum of 50 percent, by 10 to 30 percent, and will submit a revised bill of the local tax law to the regular session of the National Assembly in September.

Also, fundamental bodies that lower property taxes by artificial means against government policy will be at a disadvantage when composite land taxation, which is a national tax, is distributed to self-governing bodies.

Chief ruling party policymaker Hong Jae-hyung had a conference between the government and the party with Government Administration and Home Affairs Minister Huh Sung-kwan, and came to an agreement on May 19.

“(If a high-ranking official is the biggest shareholder,) there can be adverse criticism about the defense of the right of management and dealing with the stocks that are not listed. We need to examine this carefully,” said the government and the ruling party about placing blind trust in stocks of high-ranking and elected officials. They also reached a consensus on preparing additional plans before introducing the system.

Hong said at the conference, “The range of obligors will be reduced from a person’s linear descendants to one’s spouse and children under age. We need to examine this to apply a postponement period and an expiration provision to elected public officials who also hold the post of enterprise manager.”

However, the Ministry of Government Administration and Home Affairs is in the position where it cannot allow exceptions for public officials managing enterprises who have stocks for their defense of the right of management for the reason of equity. Adverse criticism is expected in the process of revising the law.

Meanwhile, the government and the party will again discuss the extension of the retirement age of petty officials from 57 to 60 that has been suggested by the Presidential Committee on Government Innovation. During the discussions, they will also consider the employment picture overall, including youth unemployment.

Young-Hae Choi yhchoi65@donga.com