Getting Firm Grips on Inflation and House Rentals

Chief Policymaker of GNP Lee to do every thing to help the poor, create jobs and control housing rents



Rep. Lee Ju-young, new chairman of the Policy Committee of the Grand National Party, said he will devote himself to the withdrawal of tax reduction for the rich and increasing the budget for welfare while he is heading the policy committee of the ruling party.
The new chief policymaker has recently been named to take over the position in a recent shake-up of the party's key leaders following the defeat of the party's losses in key supplementary elections held last month, especially, in the Bundang B district of Bundang City, Gyeonggi Province, and the governorship of Gangwon Province.
Hurtful to the party in particular was the loss at the Bundang B district where Rep. Sohn Hak-kyu, chairman of the opposition Democratic Party won the seat from the ruling party candidate, Kang Jae-sob, former chairman of the GNP. The loss is particularly glaring as it might have emboldened the winner's position as his potential Presidential bid coming up next year and also strengthened his grip of the major opposition party.
He told reporters following his appointment to head the committee that he will take a deep look into the House Leasing and Rental Protection Law and the upper limits on monthly housing rental and long-term leading charges for possible revision based on regions. He was asked to comment on the high housing rental charges and inflation on the defeat of the ruling party candidates.
The low birth rates and aging society and increases in one-man household have required changes in the housing supply system with the support of government policies, the chairman said.
The rising inflation rates also need short-term measures to cool it as well as the reform of price monitoring system and changes in the direction of policies for interest rates and foreign exchange rates. The party will not depend on government reports alone, but also tour the markets to grasp the market situations directly, the lawmaker said. He said the party relied on too much on government reports, especially, the inflation rates and the house rentals, which said they were all right to his regret.
The legislator also said a serious thought should go to the issue of giving financial market supervision rights to the Bank of Korea, taking away some of the rights from the Financial Service Commission and the Financial Supervisory Service in light of the various problems swept the savings banks around the country. We ought to take a serious look into the matter to arrive at the right decisions to the extent that no development of problems occur from splitting the financial market supervisory rights between the FSS and the central bank.
The three-term legislator from the Masan A District in South Gyeongsang Province, said we at the political circles ought to watch out for policies proposed to win popularity as already some legislators have been voicing irresponsible proposals for welfare fund increases as part of their political maneuvering as they become poisons in long-term perspectives in the end.
The former High Court judge said an independent organization should be set up and watch out for the health of the national treasury and he will hold consultations with the government on the idea.
The legislator, a graduate of the Seoul National University Law College, said he will push for the legislation to provide 10 trillion won to support the needy families in the country to help them, not from a political considerations, but also to balance the living standards of the national life by closing the gap between the rich and poor, which is the responsibility of the parliament.
No people would have trust in the ruling party unless they would be able to save their living expenses, and provide increased government support to the cost of bringing up children and education and resolve the areas where welfare programs don't reach with additional funds, the lawmaker said.
Lee also said the ruling party cannot forever keep policies to reduce taxes including corporate and personal income taxes and they should change depending on the economic conditions and the livelihood of the people, adding that it is inevitable that plans for tax reduction should be put on hold. He cited that the current problem is the people don't benefit from tax cuts and about 5 trillion won in funds created from tax reductions should be added to the 10 trillion won in fund to be used to help the poor in the country, he said. nw

Photo on Courtesy of Rep. Lee’s office