Park Soo-young: “Income, inheritance and tax increases need a sweeping overhaul to address ‘stealth tax hikes’”

[Financial News] Park Soo-young, a People Power Party lawmaker on the National Assembly’s Finance and Economy Planning Committee, argued on the 7th that income, inheritance and gift taxes, among others, should be overhauled across the board. His argument was that the tax burden should be reduced because deduction thresholds remain stuck in the past even as prices, wages and asset values have risen sharply.
Park made the remarks at a news conference at the National Assembly Communication Center that day, saying, “National income has tripled and the minimum wage has increased sevenfold, but tax deductions have remained unchanged for 30 years.”
Park noted, “Lee Kwang-jae, chair of the National Assembly’s Special Committee on Budget and Accounts, called for outdated tax standards to be brought up to date. I strongly welcome that. I, too, have proposed and advocated various bills to boost economic vitality and reduce the public’s tax burden, alongside realistic tax reforms such as indexing income tax to inflation, but I have repeatedly been blocked by opposition from the Democratic Party of Korea (DPK).”
He explained, “As times change, the value of money and assets changes. Per capita national income, which was around $10,000 in the late 1990s, rose to $36,000 last year, an increase of more than threefold.”
He went on to criticize the system, saying, “But the tax system remains stuck in the past. The basic deduction for capital gains tax, 2.5 million won, has remained unchanged for 31 years since 1996, while the 500 million won lump-sum inheritance tax deduction and the 500 million won minimum for the spousal inheritance deduction have remained unchanged for 30 years since 1997. The income tax base has also been revised several times since its introduction in 1975, but it does not reflect rising asset values and prices.”
Park pointed out, “The number of people subject to inheritance tax rose 16-fold, from around 1,300 in 2000 to 22,500 last year. Prices, wages and asset values are soaring, but the tax system—including deductions and tax thresholds—remains as it was in the past. As a result, the tax burden is increasing even without raising tax rates.”
He continued, “We must now address the ‘silent stealth tax hikes’ that have continued for decades. We should also move away from the outdated ‘tax cuts for the rich’ frame. Bringing a system from decades ago into line with today’s realities is tax justice and the way to uphold the ability-to-pay principle,” he argued.
Park pledged, “I ask you to join me and Lee Kwang-jae, chair of the Budget and Accounts Committee, in calling for a sweeping overhaul of long-outdated taxes, including income, inheritance and gift taxes, to reduce the public’s tax burden. On a cross-party basis, the People Power Party will devote every effort to overhauling the outdated tax system that is holding the public back, and will continue to pursue tax cuts, a cornerstone of the party’s policy platform.”

[email protected] Lee Hae-ram Reporter