Daegu Mayor calls for abolishing comprehensive real estate tax and making asset tax a reality (South Korea)

On the 18th, Hong Jun-pyo, mayor of Daegu, South Korea, called for the shift to a negative approach to corporate regulations and the abolition of comprehensive real estate taxes and reconstruction charges. He also called for the abolition of taxes on foreign workers.
Mayor Hong also raised the need for specific conditions for the minimum wage to be applied.
When asked how the government can bring back the slogan, he said, "Not only the country but also companies need to innovate," and said he would like to see corporate regulations changed to a negative system.
"We should set the standards and let the companies decide the rest for themselves," he said, emphasizing that "this will lead to the birth of new industries." He added, "When a new field is born, Japan first thinks about regulations, but in the past,
The prefecture has always said it would set up a regulatory reform committee to ease regulations, but has there ever been any actual easing of regulations?
He also said that inheritance taxes should be significantly reduced in the case of business succession.
"Without that, we won't have a society where companies can sustain themselves," he said. "We must not deny the basic principles of capitalism. Those who hold a large number of shares should be the ones to manage the company," Mayor Hong said. "If it can't be managed properly,
"If the directors fail to comply with the obligations of loyalty, the company will go bankrupt," he said. He also said that the proposed amendments to the Commercial Code recently passed by the National Diet under the leadership of the opposition parties were "inappropriate" and that "extending the duty of loyalty of directors to shareholders is inappropriate under the Capital Markets Act.
"There is room for listed companies to consider this issue based on the basic law, but including it in the Commercial Code, which is a fundamental law, could have a chilling effect on the entire economy," he said.
"We need to take measures to prevent the abuse of litigation by private individuals," he said, warning, "otherwise we will become a country where running a business becomes a crime."
Regarding the real estate tax system, "Because I have land, forestland, and a house, I am subject to a comprehensive real estate tax.
But why should I have to pay comprehensive real estate tax just because I own a house?" he said, arguing for the abolition of the comprehensive real estate tax and the realization of the asset tax standard.
"The entire system should be reformed and the property tax should be raised," he said. He also said, "In order to stimulate real estate transactions, the capital gains tax should be relaxed and the reconstruction contribution should be completely abolished.
"If you live in your house for 30 to 40 years, it becomes old. Why should you have to pay the reconstruction fee when you're trying to tear down your house and build a new one?" he said.
"I've worked so hard to get a job, so why should we impose taxes on excess profits?" he said. When asked about the possibility of a shortfall in tax revenues due to the reform of the real estate tax system, he said, "In the end, we're aiming for a smaller government."
"The era in which the state could control every sector is over," the mayor said. "We need to shift to a private-sector initiative. It's difficult to stimulate the economy with government budgets alone."
Regarding the minimum wage system, he said, "The people who decide the minimum wage have the greatest interest in small businesses and small and medium-sized enterprises. However, the Minimum Wage Commission
"Small businesses and small and medium-sized enterprises are not allowed to join the committee. The Democratic Labor Union makes all the decisions," he said, pointing out the need for reform of the system.
"Maybe it's because Japan values human rights, but shouldn't the minimum wage be applied to foreigners under certain conditions?" he said. "The position of those who are truly victims of the minimum wage system is also important.
"The tax rate should be decided by taking into consideration all factors, including industry, region and class," he said. "If it's decided uniformly, the ones who will suffer the most will be the self-employed and small business owners," he added.