Input 2021.01.19 14:09 | Revision 2021.01.19 14:52
Nak-Yeon Lee: “Political involvement must be very cautious”
Emphasizing’voluntaryness’ mentioned by President Wen
“Let’s create a social solidarity fund together…’Disaster solidarity tax’ is not yet considered”
After the spread of the new coronavirus infection (Corona 19), the Democratic Party, which is demanding’profit sharing’ targeting platform companies whose profits have increased due to non-face-to-face economic revitalization, is aiming the arrow toward the financial sector. On the 19th, the Democratic Party Policy Committee Chairman Hong Ik-pyo proposed to create a so-called “interest stop method” that would allow the financial sector to reduce interest on loans or defer interest repayment for those affected by the Corona 19 incident.
It is explained that such a plan is being reviewed as part of the Democratic Party’s’Profit Sharing System’. It is pointed out that intervening in the business may be excessive management interference.
Chairman Hong Ik-pyo appeared on KBS Radio on the day and said, “The industry that is benefiting the most even in the corona situation is the financial industry,” and said, “Banks are receiving interest all the time, but they must stop or limit interest like rent.”
Chairman Hong said, “The current benchmark interest rate is 0.5%, but you should lower the interest rate or stop bank interest (repayment) if it is inevitable.” When asked by the host,’Is it possible to touch the interest rate?’ He said, “There is a need to consider social movements or temporary special laws to increase the interest burden by lowering individual credit ratings or to stop foreclosures and root mortgage (setting).”
Chairman Hong pointed out that the reason why the government’s’Good Landlord’ campaign failed was due to the interest burden. Chairman Hong said, “Some of the landlords may have money piled up, but many of them have debt. They also have to pay interest to the bank.” “It’s a form to take.”
◇Somewhat “excessive management interference”… Nakyeon Lee, “You have to be very careful”
When Chairman Hong’s remarks showed signs of controversy leading to’government finance’ controversy that excessively restricts private economic activities, Democratic Party leader Lee Nak-yeon drew a line saying, “You have to be very careful.” Representative Lee met with reporters on this day and said, “There may be many ideas, but they have not been officially discussed. I think it is necessary to be very cautious about the political parties involved in interest.”
Representative Lee’s remarks came out without prior notice at a conference for cooperation in securing corona 19 beds. CEO Lee said, “Please alleviate the financial interest burden,” and said, “There is a (financial holding) chairman who is thinking of easing the expected interest rate, and other chairmen also said they would be willing to do it.” In response, bank executives are said to have already delivered an embarrassing position, saying that they have lowered the lending rate for small business owners according to the government’s policy and are also supporting emergency management safety funds.
Some financial sectors are responding that the ruling party is also trying to interfere with bank interest rates due to the habit of government finance. It is pointed out that the interest rate, which is determined in consideration of the demand for funds in the market, may involve political logic and damage shareholder value.
◇ Emphasis on’voluntary participation’ in the profit sharing system… “I don’t take it into account”
As if conscious of this controversy, the ruling party emphasizes that the’voluntary participation’ of companies is premised on the profit sharing system. Earlier, President Moon Jae-in also said at a New Year’s press conference the day before, “it is desirable that voluntary participation will take place,” saying “the government cannot enforce the benefit-sharing system.” President Moon repeatedly emphasized that the development should be carried out as a voluntary movement of the’private and economic circles’.
The easiest way to access it from the perspective of the government and the ruling party is to create a’Social Solidarity Fund’. It is a method of raising funds by combining corporate donations and government finances and distributing them to self-employed persons and small business owners affected by Corona 19. This is because there is a’justification’ to induce companies to participate by providing incentives such as tax incentives, so they can be more free from criticism of’corporate twisting’.
In this regard, Chairman Hong said, “There are various methods of (profit sharing), but the first one is to consider’voluntaryness’,” he said. “I hope that the financial sector will work with the fundraising problem.” Chairman Hong drew a line about the’disaster solidarity tax’, saying, “We do not consider it at the moment.”
However, Chairman Hong said, “It does not completely close the possibility of taxation,” he said. “That’s the last minute issue to consider.” It does not hide the intention that it is possible to mobilize compulsory means such as taxes.
“There may be social resistance to creating additional tax items,” he said. “If the fund is created and meaningful activities are carried out, we will be able to discuss it when there is a consensus among the people of’Let’s expand and add taxes’.” did.