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Conflicts between ruling party and gov’t on tax revenue worsen

Conflicts between ruling party and gov’t on tax revenue worsen

Posted November. 18, 2021 07:21,   

Updated November. 18, 2021 07:21


As Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, pushes for COVID-19 financial aid for all people, the conflicts between the party and the government are worsening. “It is shocking that the extra tax revenue this year is expected to be around 50 trillion won,” said the leadership of the ruling party on Wednesday, criticizing the Ministry of Economy and Finance. Hong Nam-ki, the Deputy Prime Minister and the Minister of Economy and Finance, expressed his regret toward the ruling party.

“It is regrettable how incorrect tax revenue forecast was,” ruling party leader Song Young-gil said at the party’s election committee meeting on Wednesday. “Such a passive attitude of the Ministry of Economy and Finance clearly needs to be examined.” Following the party’s floor leader Yun Ho-jung’s comment about an investigation of government affairs the previous day, the party leadership put pressure on the government again.

“I apologize once again for errors in tax revenue forecast. However, it is unfortunate that the party said it was intentional,” Hong told reporters on Wednesday. “Most of the excessive tax revenue should be spent to make up for the shortage of financial resources to compensate small business owners and to cover additional measures for businesses not covered by the existing compensation schemes.” The deputy prime minister opposed the ruling party’s argument to spend the extra tax revenue to pay COVID-19 financial aid for all people.

“They seem to be willing to try any means possible to buy votes for the presidential election,” Kim Gi-hyeon, the floor leader of the main opposition People Power Party, said at an emergency press conference regarding the ruling party’s pressure on the Ministry of Economy and Finance. “If the ministry pretends to oppose the ruling party for a while and gives in later, strong legal and political responsibility will be asked.”

Hye-Ryung Choi herstory@donga.com