Opposition! Opposition! Opposition!… ‘The keeper’ shouted against Hong Nam-gi 9 times.

Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, is present at the main assembly hall of Yeouido, Seoul, where the 5th plenary session of the 384th National Assembly (temporary assembly) was held on the afternoon of the 5th.[김호영기자]

Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, is in conflict with the ruling Democratic Party. In the face of the Corona 19 economic crisis, the conflict between the ruling party, saying’let’s spend more money’ and Deputy Prime Minister Hong, saying that’financial soundness is important’ is clear.

Until now, even though Deputy Prime Minister Hong was in charge of the management of national finances, his arguments were not accepted, and the ruling party’s will came to an end. Deputy Prime Minister Hong’s words are said to have been lost in a row. There are voices in the ruling party urging Deputy Prime Minister Hong to resign. This is because even though he is a watchman of the national fiscal soundness, he repeats only the opposite.

We looked at the trajectory of Deputy Prime Minister Hong Nam-ki.

1. “Do not review stock exchange tax cuts”

In January 2019, Deputy Prime Minister Hong said, “We will not review the abolition or reduction of the stock exchange tax.” This was because tax revenues decreased by about 6 trillion won a year, and equity issues with other assets occurred. However, according to the ruling party’s will, “It is absurd to pay taxes when there is no profit,” the stock exchange tax was cut. The’conflict’ between Deputy Prime Minister Hong and the ruling party began at this time.

2. “Reduce credit card income deduction”

In March 2019, Deputy Prime Minister Hong said, “We will reduce credit card deductions,” and was criticized by the ruling party and public opinion, saying, “Increase in common people. Credit card income deduction was introduced to reduce the underground economy by accurately grasping business income. It was introduced in 1999 and was originally scheduled to be implemented for only three years, but it lasted for 20 years.

The purpose of the introduction has already been achieved, but it could not be ended due to severe backlash from general credit card users. Deputy Prime Minister Hong’s argument at the time was fuzzy.

3. “Only 70% of the 1st disaster support fund… please leave a dissenting opinion”

In April of last year, Deputy Prime Minister Hong adhered to the plan to pay the lower 70% of the first emergency disaster support fund. It meant “we need to accumulate financial capacity for more difficult situations.” He was reportedly opposed to the ruling party’s “all citizen payment plan” even in consultations with the party administration.

As a result of the meeting, it is known that even after the decision was made to “pay the citizens before the disaster subsidies,” Deputy Prime Minister Hong requested, “Please keep my dissenting opinions as a record”.

4. “Real estate market supervisory authority can’t make a decision”

In August of last year, President Moon Jae-in said, “We will consider establishing a real estate market supervisory body if necessary for the effectiveness of real estate measures.” At the time, the Minister of Land, Infrastructure and Transport Kim Hyun-mi also said, “We need an organization to crack down on real estate market transactions.”

However, Deputy Prime Minister Hong had a different idea. He said, “The establishment of a real estate market supervisory body is in the early stages of discussions inside the government, and there are quite a lot of negative opinions,” he said. “I don’t think it’s a matter to be decided too quickly.”

5. “I don’t think about the 2nd disaster subsidy”

In August of last year, when discussions on the second disaster subsidy grew, Deputy Prime Minister Hong dismissed at a meeting with foreign journalists, saying, “The financial burden is large and the effect needs to be grasped, so I am not thinking of the second emergency disaster subsidy.” The National Assembly’s Special Committee on Budget and Accounting was concerned that “if (secondary disaster subsidies) are given, 100% deficit government bonds must be issued.”

The ruling party, which was leading the discussion on the second disaster subsidy, was hot. When Deputy Prime Minister Hong referred to Gyeonggi Governor Lee Jae-myung, who insisted on providing the citizens before the disaster subsidies, opposition lawmakers said, “I think so,” when the opposition lawmaker asked, “I think so,” it was controversial.

6. “Korean fiscal rules are required”

In October last year, the Ministry of Science and Technology announced the’Korean Fiscal Rules’ based on the 60% ratio of national debt to gross domestic product (GDP). Both the opposition parties opposed this. The ruling party said, “I came up with the fiscal rules when the fiscal role was necessary,” and the opposition party criticized it as “the rules of swearing with exceptions.”

However, Deputy Prime Minister Hong emphasized the need for fiscal rules, saying, “The rate of increase in national debt and fiscal deficit is faster than in the past.” I personally uploaded a video on the YouTube channel of the Ministry of Finance, explaining the need for financial rules.

7. Resignation after “reduction of the requirement for major shareholders to 300 million won”

There was also a conflict over the adjustment of the requirements for large shareholders, which are subject to capital gains. The ruling and opposition parties agreed to keep the standard of large shareholders at 1 billion won. However, Deputy Prime Minister Hong argued that “the plan to cut the standard for large shareholders to 300 million won has already been revised in the enforcement decree two and a half years ago, so we have no choice but to go.”

When it was finally decided to maintain the 1 billion won requirement at the party administration meeting, Deputy Prime Minister Hong took responsibility for the situation and expressed appreciation. However, he held the post as a friend of President Moon.

Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, speaks at the high-ranking party government meeting held in the National Assembly on the morning of January 20. Right is Nak-yeon Lee, Democratic Party Representative [연합뉴스]

8. “100 trillion won worth of loss compensation impossible”

Deputy Prime Minister Hong also opposed the loss guarantee system for restrictions on corona operations. The necessary financial resources are too large. In a media interview on the 25th of last month, Deputy Prime Minister Hong said, “(If the loss compensation law initiated by the ruling party), it will cost 100 trillion won in four months. Considering that Korea’s annual welfare budget is about 200 trillion won, “It is impossible”.

Earlier, on the 22nd of last month, on his Facebook page, he pointed out, “Financial situation and financial resources are one of the important policy variables to be considered.”

9. “Universal + selection can not be done at once”

When Democratic Party leader Lee Nak-yeon mentioned’selection + universal payment’ as the 4th disaster support payment method in the parliamentary bargaining group’s representative speech on the 2nd, Hong refuted. Shortly after his speech, Deputy Prime Minister Hong wrote on Facebook that “it is difficult for the government to accept that it will provide universal support and selective support for the whole people at once.” It completely refuted CEO Lee’s argument over the 4th disaster support fund.

In addition, it was reported that at the closed party meeting on the 1st, Democratic Party leader Kim Tae-yeon and Deputy Prime Minister Hong had a battle between Goseong and Goseong over how to pay the 4th disaster support fund.

[이석희 기자/안현호 인턴기자]

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