Deputy Prime Minister Lee “Examining the Deferment of Heavy Taxation of Those with Three Houses”

Lee Heon-jae, deputy prime minister and minister of the Ministry of Finance and Economy (MFE), revealed on December 3, “We are examining deferring the system of imposing heavy transfer income taxes on families with three houses.”

Controversy is expected to rise since this is against the official announcement of Cheong Wa Dae that, “It will be enforced as planned from next January.”

On this day at a luncheon gathering with the MFE press, Deputy Prime Minister Lee answered to an inquiry about his position on the system of heavy transfer income taxes, saying, “We are still examining the system,” and added, “We can genuinely scrutinize the real estate possession tax reform after the National Assembly passes the reform bill.”

Related to the fact that Lee Jung-woo, the presidential policy coordinator, announced his opposition to the deferment of the system of heavy transfer income taxes, he answered, “It is possible to express opposite views considering that heavy transfer income taxes is the core of the 10/29 real estate countermeasure.”

As to the actuality that the ruling party, the government, and Cheong Wa Dae are voicing different opinions, Deputy Prime Minister Lee indicated, “As there are many groups with their interests intertwined, it is inevitable that there are many different views,” and added, “Believing that everybody’s opinions should be identical is little above a military culture.”

However, Deputy Prime Minister Lee explained, “The announcement date of the businesses related to the comprehensive investment plan will be later than initially planned,” and added, “First, we must find model examples and give the initial right to decide whether they will invest in it to the pension fund before private companies such as life insurance companies.”

Chi-Young Shin higgledy@donga.com