Chung Jeom-sik launches all-out attack on Lee Jae Myung government’s economic policies: “Every sector is collapsing”

[Financial News] People Power Party floor leader Chung Jeom-sik launched an all-out attack on the Lee Jae Myung government on the 8th, comparing it to “Jaemdemic,” a combination of President Lee Jae Myung’s name and “pandemic.” He criticized the administration, saying, “South Korea is now collapsing in every area, including public safety, real estate, stocks, the rule of law, national defense and national finances,” and, “Since the founding of the Republic of Korea, there has never been a government that has brought so many things down so disastrously and so quickly.”
During his negotiating-group representative speech at the National Assembly that day, Chung said, “When approval ratings plunge, the government should first change its governing direction. But the Lee Jae Myung government is still closing its eyes, covering its ears and going its own way,” making the remarks.
He was particularly critical of the government’s real-estate policies. Citing the fact that the upward trend in home prices had continued for 82 consecutive weeks since February last year, after the Lee Jae Myung government took office, he intensified his attack. “The Lee Jae Myung government is proving without fail the rule that real-estate prices soar when the left takes power,” he said. “A triple rise in sales, jeonse and monthly rents is sweeping through the capital region like a domino effect. The president has brought the people down, not real estate.”
Chung also criticized the government’s real-estate tax reform plan point by point. Referring to the government’s announcement and subsequent withdrawal of the August 3 tax reform plan, which would have increased the comprehensive real estate tax burden on nonresident owners of a single home, he said, “While government policy keeps changing back and forth, some tenants may have been pushed aside elsewhere.” He urged the government to scrap its real-estate policies entirely, saying, “Please think before announcing a policy.”
He also mentioned the increased volatility of the KOSPI Composite Index following the introduction of single-stock leveraged exchange-traded funds (ETFs). “Since single-stock leveraged ETFs were listed, there have been 31 sidecars and seven circuit breakers,” Chung said. “Past cases of circuit breakers being triggered involved catastrophic situations such as the collapse of the dot-com bubble, the September 11 attacks and the COVID-19 pandemic. In other words, this means the Lee Jae Myung government’s financial policy is a disaster.”
He called for a parliamentary investigation and a special counsel probe into the process of introducing and reviewing single-stock leveraged ETFs. “We must uncover everything: whether this was the unilateral decision of former policy chief Kim Yong-beom or whether someone above him was involved, and why the product was launched just before the local elections,” he said.
He also described the government’s industrial policy as “corporate plunder.” “The Minister of Employment and Labor called semiconductors a public good and mentioned distributing excess profits, while former policy chief Kim Yong-beom proposed introducing an ‘AI national dividend,’” he said. “The idea is to wrap up companies and strip them of their money as soon as they earn it.”
Regarding the plan to create a semiconductor cluster in the southwestern region, he stressed, “Companies should be free to decide where to invest, and local governments should compete fairly to attract companies.” He added, “Cheong Wa Dae’s blitzkrieg for a mega-project is a convention blitzkrieg aimed at getting a particular person elected and another particular person defeated.”
Regarding the Yellow Envelope Act, or amendments to Articles 2 and 3 of the Trade Union Act, he called it “a law that is hardly a law” and said, “We will amend it to clearly define the primary contractor’s status as an employer and the scope of collective bargaining.”
Regarding the KRW 820 trillion budget proposal approved by the Cabinet on the 1st, he called it “extreme expansionary fiscal policy” and asked, “How does the government intend to control inflation and real-estate prices while handing out money on this scale?”
Regarding the KRW 162 trillion Future Response Fund, he added, “This means the government intends to bypass the National Assembly’s budgetary control and spend money as it pleases.” He continued, “When excess tax revenue comes in, the principle under the National Finance Act is to repay government bonds first.”
He also presented alternatives. “We will completely abolish inheritance and gift taxes between spouses and eliminate taxes on overtime work,” he pledged. “We will introduce a new tax-advantaged savings account to help young people build assets.”
He continued, “We will first sharply increase housing supply by abolishing regulations on private redevelopment and reconstruction.” He added, “We will ensure that single-home owners do not have to worry about taxes. We will reduce acquisition taxes on first homes purchased by young people and newlywed couples and provide ultra-low-interest loans.”
Chung added, “When excess tax revenue is generated, we will repay the country’s debt first and will not pass debt on to future generations.” He also said, “We will improve the retroactive contribution payment system for foreign nationals in the National Pension Service and introduce the principle of reciprocity between countries across the social insurance system.”
[email protected] Lee Hae-ram Reporter