Song Eon-seok, floor leader of the People Power Party, criticized President Lee Jae-myung’s suggestion to phase out the long-term holding special deduction (장특공), calling it “a claim born of ignorance that shows no understanding of the market or tax law.” At a morning press briefing at the National Assembly in Yeongdeungpo District, Seoul, Song said, “Labeling the long-term holding deduction simply as a special favor and calling for its abolition reflects a misunderstanding of the system’s purpose and ignorance of basic tax principles.” He added, “This deduction is not a perk; it is a minimal safeguard against tax distortions. Proposing to abolish it demonstrates a lack of understanding of both market dynamics and tax law.”
Song warned that eliminating the deduction could result in taxing amounts that are not true income, producing excessive tax burdens and eroding the principal. He said the argument that removing the deduction and raising taxes would increase listings and stabilize the market has no basis. On the contrary, stronger capital gains taxes can delay sales, suppress trading activity, and exert upward pressure on prices.
“Policy cannot be resolved by simply imposing power,” he said. He urged, “Before posting messages on social media, President Lee should first conduct a thorough review of the system with economic experts.”
Song also renewed his call for restarting the president’s trial. “The mastermind behind the Daejang-dong corruption is, without doubt, Lee Jae-myung, who was then the mayor of Seongnam,” he said. “Heaven knows, the earth knows, the public knows, and even the president himself has acknowledged aspects of it. Yet the Democratic Party calls this a fabricated indictment and tries to cover it up.”
He continued, “A Democratic Party figure exposed the case, and the investigation began under Prosecutor Kim Oh-soo during the Moon Jae-in administration. It makes no sense to claim the probe was politically targeted simply because prosecutorial findings emerged under the Yoon Suk-yeol administration years later.” He added, “Justice Minister Jeong Seong-ho called the Daejang-dong investigation a ‘successful probe.’ How can it suddenly be labeled a fabricated investigation six months later?”
He urged President Lee not to pressure prosecutors into dropping charges in a way that would amount to a self-incriminating act. “I strongly urge him to resume the Daejang-dong trial so any fabricated evidence can be exposed,” Song said.
On allegations that Democratic Party Busan mayoral candidate Jeon Jae-soo received bribes from the Unification Church, Song said, “The reason he cannot simply say, ‘I never received a Cartier watch and cash,’ and instead dodges the question is that he fears prosecution for making false statements.”
He added, “The candidate claims that ‘the joint investigation task force’s findings contain no indication that he received money or goods from the Unification Church,’ but that is plainly false. The task force has explicitly stated it suspects the candidate went to Cheon Jeong-gung and received a watch and cash.” He concluded, “Because the candidate’s remarks distort the investigation’s findings and amount to false statements, we will consider filing additional charges.”
