Democratic Party Lawmaker Lee Un-ju Strongly Criticizes Tax Reform: "President's View as a Candidate Not to Control Housing Prices with Taxes Was More Correct"

[Joo Young-jin's News Briefing]

When quoting this interview, please credit the program name as "SBS <Joo Young-jin's News Briefing>." Copyright belongs to SBS.

■ Broadcast: SBS <Joo Young-jin's News Briefing> Mon–Fri (14:00–15:20)
■ Host: Anchor Joo Young-jin
■ Guest: Lee Un-ju, Democratic Party Lawmaker
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● Interview with Democratic Party Lawmaker Lee Un-ju
"Kim Min-seok won overwhelmingly in Honam… Election as party leader was expected"
"Honam reflects the party's sentiment best… Seems to desire stable cooperation between party and government"
"Even bitter advice must stem from loyalty to the president"
"Party leader–supreme council member voting showed elements of a check-and-balance mindset"
"On real estate policy, I believe the president's thinking during the presidential campaign was more correct"
"In principle, you cannot control real estate with taxes"
"Without supply, housing becomes unstable… Suppressing demand has its limits"
"To stabilize housing, we must focus on stabilizing jeonse and monthly rentals… Give people room to breathe"
"Price instability of low-to-mid priced housing and the jeonse/monthly rent issue are the most serious"
"Making an issue based on speculation about constitutional revision for consecutive terms is not desirable"
"We are in an era where security requires burden-sharing… Alliances also require a cost"
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[Anchor Joo Young-jin] : Following the Democratic Party national convention, Democratic Party lawmaker Lee Un-ju joins us for her first post-convention interview. You are also a former senior supreme council member of the Democratic Party. Welcome.

[Lee Un-ju / Democratic Party Lawmaker] : Hello.

[Anchor Joo Young-jin] : You were probably at the national convention venue yesterday. Did it wrap up well, and what are your thoughts? Representative Kim Min-seok was elected leader.

[Lee Un-ju / Democratic Party Lawmaker] : It is over now.

[Anchor Joo Young-jin] : Did you anticipate that Representative Kim Min-seok would become the party leader?

[Lee Un-ju / Democratic Party Lawmaker] : Seeing him win so overwhelmingly in Honam, I anticipated that he would make it.

[Anchor Joo Young-jin] : In the end, it would not be an exaggeration to say that Honam decided the outcome of this national convention, given how close the Seoul metropolitan area was.

[Lee Un-ju / Democratic Party Lawmaker] : That seems to be the case.

[Anchor Joo Young-jin] : Then what do you think was the biggest reason behind the choice of party members in Honam?

[Lee Un-ju / Democratic Party Lawmaker] : In my view, Honam is the place where the party sentiment is most clearly reflected. In fact, there are also many people from Honam living in the metropolitan area among our party members. So in that sense, with Honam and its diaspora playing a decisive role in party sentiment, the current administration produced by the Democratic Party has just entered its second year, hasn't it? Because it is still in its early phase, I think there was a strong reflection of the desire for the Lee Jae-myung administration to proceed stably and successfully. That means stable cooperation and communication between the party and the government. Furthermore, there have been some somewhat unstable situations recently. Approval ratings have fluctuated and declined, and there are areas where straightforward advice to the president is needed. But straightforward advice can only be delivered when communication flows well. Therefore, I believe the awareness that a leadership capable of communicating smoothly with the president was needed played a major role.

[Anchor Joo Young-jin] : Even when offering candid advice, there must be good communication to do so. Under former leader Jung Chung-rae's tenure, were party-presidential office relations worse than reported in the media, or did the media exaggerate? What are your thoughts?

[Lee Un-ju / Democratic Party Lawmaker] : It is difficult for me to say.

[Anchor Joo Young-jin] : Based on what you felt, since you were a member of the leadership at the time.

[Lee Un-ju / Democratic Party Lawmaker] : There was former leader Jung Chung-rae's personal relationship with the president, but there were also the relationships surrounding them, weren't there? You could say all of those factors had an impact. Trust is crucial. So in reality, rather than superficial aspects like conveying good words and content, what matters in the end is whether bitter advice comes from genuine loyalty to the president or from certain other intentions, and how it is received. It depends on that.

[Anchor Joo Young-jin] : This time, Representative Kim Min-seok became the leader, but according to media reports, two pro-Lee figures and three politicians close to former leader Jung Chung-rae were elected as supreme council members. As a result, some say factional conflict within the supreme council and leadership composition might flare up whenever an opportunity arises, even if not immediately. Did you feel such dynamics in the previous leadership as well?

[Lee Un-ju / Democratic Party Lawmaker] : There was some of that. However, in the case of the previous leadership, they were originally formed alongside the president and then only the party leader changed.

[Anchor Joo Young-jin] : Right.

[Lee Un-ju / Democratic Party Lawmaker] : But this time, the entire leadership was newly elected, so the formation process itself was different. That is why I expect they will navigate things well.

[Anchor Joo Young-jin] : Looking at the voting results from party members with voting rights, while Kim Min-seok became the leader, Lawmaker Choi Min-hee, who criticized him most fiercely during the convention, was elected senior supreme council member. How should we analyze the sentiment embedded in the votes of these members?

[Lee Un-ju / Democratic Party Lawmaker] : Usually, for supreme council members, it is two votes per person.

[Anchor Joo Young-jin] : Right, choosing two candidates.

[Lee Un-ju / Democratic Party Lawmaker] : You do not necessarily have to finish first; you just need to secure a relatively high number of votes. Even without a majority or an overwhelming lead, if you receive concentrated votes from one side…

[Anchor Joo Young-jin] : If there is a particular faction or bloc.

[Lee Un-ju / Democratic Party Lawmaker] : If you receive concentrated votes, you can become the senior supreme council member. So there certainly is an aspect where a check-and-balance psychology operates. That is also part of democracy.

[Anchor Joo Young-jin] : Indeed. Voting by party members during conventions, as well as general and by-elections, often shows exquisite balance. Moving on, breaking news just came in that Justice Minister Jeong Sung-ho tendered his resignation. Did you expect this? Expressing an intent to resign is different from formally tendering a resignation.

[Lee Un-ju / Democratic Party Lawmaker] : I thought he would submit his resignation before long.

[Anchor Joo Young-jin] : Why did you think so?

[Lee Un-ju / Democratic Party Lawmaker] : Because, although the president was away, when he spoke to that extent, I thought he made those remarks intending to eventually submit his resignation. At that time, since the president was absent, it remained verbal, and I anticipated he would formally submit it in due course after consulting with the president upon his return and once party-government relations settled after the national convention.

[Anchor Joo Young-jin] : Do you expect a Cabinet reshuffle to refresh the atmosphere?

[Lee Un-ju / Democratic Party Lawmaker] : It seems inevitable. Various policy alignments need to be sorted out, and there are vacant posts as well.

[Anchor Joo Young-jin] : Speaking of policy, I must ask about this. Regarding the real estate tax reform plan, there is speculation that Leader Kim Min-seok might also suggest revisions to the government. You are known as a politician who has studied policy and economic issues for a long time. What is your assessment of this real estate tax reform proposal?

[Lee Un-ju / Democratic Party Lawmaker] : Personally, I have been very critical of it.

[Anchor Joo Young-jin] : Very critical.

[Lee Un-ju / Democratic Party Lawmaker] : First of all, having discussed real estate policy extensively during the last presidential election campaign, I believe what the president said back then was more correct.

[Anchor Joo Young-jin] : You had many discussions with the president at the time.

[Lee Un-ju / Democratic Party Lawmaker] : I believe what he thought back then was rather more correct.

[Anchor Joo Young-jin] : Has there been some change in the president's thinking now?

[Lee Un-ju / Democratic Party Lawmaker] : I am not sure. I have not discussed the current developments with him. Things have changed somewhat now. Looking at the tax reform proposal, back then the idea was not to approach housing prices with taxes.

[Anchor Joo Young-jin] : Right. That was stated clearly.

[Lee Un-ju / Democratic Party Lawmaker] : I thought that was the right approach, but the recent tax reform proposal contains a great deal. First, in principle, I personally believe it is difficult to curb real estate prices with taxes. Beyond that principle, the current situation is also a factor. As I wrote on Facebook, there has been virtually no housing supply across various administrations over the past 10 years. Even if construction begins now, it will be difficult to see tangible results until the early 2030s, because completion takes time. Meaningful change will only occur around 2032, which means supply in the market is completely choked off. When there is no supply, housing becomes extremely unstable. Under unstable housing conditions, suppressing demand has clear limits. Ultimately, suppressing demand means imposing immense distress on the public. There is a limit to asking citizens to endure this pain, while supply is severely constrained until after 2030. In this situation, what must we focus on most? We must concentrate all our capabilities on housing stability above all else. Concentrating on housing stability means focusing everything on stabilizing jeonse and monthly rentals. In reality, our options are limited. We can stabilize jeonse and rentals, and for new supply, give advance notice or reservation systems to make it predictable, and that is about it. Idle land is also extremely limited. Therefore, we should move toward providing some breathing room; further blocking things now will inevitably cause adverse side effects. While people speak of tax justice or normalizing the tax system, no matter how just and noble the concept is, right now it can only produce side effects. Ultimately, it will lead to the dry-up of jeonse listings or a surge in rental prices, so I believe we must go all-in on housing stability right now.

[Anchor Joo Young-jin] : In a related matter, the Minister of Land, Infrastructure and Transport suggested building apartments in Yongsan Children's Garden to provide rental housing for young adults and newlyweds, saying that is his idea. However, environmental groups, the opposition party, the Seoul Metropolitan Government, and Yongsan District Office have all expressed opposition. Critics argue, is it appropriate to wipe out park and green space to build gray apartments, no matter how important housing supply is? What are your thoughts on this criticism?

[Lee Un-ju / Democratic Party Lawmaker] : That is also an issue that requires deeper consideration, but setting aside that controversy, it is also something that takes time. That is the point I want to make. Even if everyone agrees on such supply plans, it is a matter that will only materialize after 2030.

[Anchor Joo Young-jin] : Past 2030.

[Lee Un-ju / Democratic Party Lawmaker] : Right now, housing instability until 2032, when supply actually comes online, is the most serious issue. Price instability of low-to-mid priced homes and the jeonse/rental problem for low-to-mid priced homes are the most acute issues, especially in Seoul. The issue right now is not urgent sales of ultra-expensive properties; the housing instability of ordinary citizens is the most critical problem. Therefore, we must focus on that. Supply in the 2030s is already well laid out; we just need to execute it diligently and quickly. I hope the focus of the debate shifts to how to stabilize jeonse and monthly rents, because people are struggling right now.

[Anchor Joo Young-jin] : Since supply is important, programs should be structured to make it predictable.

[Lee Un-ju / Democratic Party Lawmaker] : And just execute it quickly as planned.

[Anchor Joo Young-jin] : Rather, while attempting to curb speculation through real estate measures, it often ends up making life harder for working-class citizens living on jeonse or monthly rent.

[Lee Un-ju / Democratic Party Lawmaker] : Housing stability. It is more important that people are not driven out of the places they live. If there is not much we can do right now, I think the most important thing is not to touch too much and stir up a hornet's nest.

[Anchor Joo Young-jin] : Understood. Regarding the constitutional revision raised by the president, the opposition asks why he does not clearly declare that he will never pursue constitutional revision for consecutive terms and has no intention of doing so. Constitutional amendment has become a topic of discussion; how do you see it?

[Lee Un-ju / Democratic Party Lawmaker] : That matter has not really been discussed in earnest yet. It is not a major issue among the public right now either, so trying to guess like the blind men touching an elephant, manufacturing various issues, and spreading conspiracy theories is not desirable. Right now, the public is in agony over housing issues, as I mentioned, and the stock market.

[Anchor Joo Young-jin] : You brought a book with you today. Looking at it from beside you, the title "The Era of Free Order Is Over" is prominently printed, with Lee Un-ju as the author. Could you briefly share what the book is about? "A Roadmap for South Korea's Economic Security in the Era of Survival Ideology."

[Lee Un-ju / Democratic Party Lawmaker] : I wrote this book while observing changes in the global order since around the time President Trump began his term last year. I wrote it while tracking these shifts for about a year. The "free order" mentioned here refers to how Western society, centered around the United States, provided a global free trade order and security order at virtually no cost—a normative liberal order. In the meantime, large markets like China, with its 1.4 billion population, grew to become formidable competitors to Western society. Consequently, it has become difficult for them to provide this liberal, rules-based order for free. They no longer provide it for free. Everything, including tariffs and alliances, now requires a price and a strategy, and we have entered an era where security also demands burden-sharing. On the other hand, authoritarian states like China and Russia have become the most formidable competitors from our country's perspective. In this environment, resources and markets have been weaponized, leading to an era of survival ideology where a resource-poor nation like ours struggles to survive. What we ultimately possess are people, talent, and technology. How will we survive using this talent and technology? I included my own strategy for this, examining how we can connect with various countries in similar situations, expand our economic territory, survive, and achieve national growth amid these dynamics.

[Anchor Joo Young-jin] : Understood. It would be great if fellow Democratic Party lawmakers and staff at the presidential office read this book together.

[Lee Un-ju / Democratic Party Lawmaker] : I will give some copies away, but since I cannot give them to everyone, I encourage people to buy and read it. Pre-orders begin at Kyobo Bookstore tomorrow, so I hope many will purchase and read it.

[Anchor Joo Young-jin] : Understood. Also, recently there was a news report that you were hospitalized in shock after seeing extremely harsh comments from party members belonging to your own party.

[Lee Un-ju / Democratic Party Lawmaker] : It was not comments; someone created a digital sexual composite, which is a sex crime. I suffered harm because of that. We commonly refer to such sexual composites as deepfakes. It is an issue faced because one is a woman, and experiencing it firsthand was extremely distressing. After going through it, I realized that many women cannot speak up after experiencing this, and people tend to dismiss it as no big deal. Therefore, I intend to take the lead in raising awareness about this issue, strengthening sentencing for such serious crimes, and working toward its eradication.

[Anchor Joo Young-jin] : Understood. I hope that leads to relevant legislation. Thank you very much for your time today, Lawmaker Lee Un-ju.

[Lee Un-ju / Democratic Party Lawmaker] : Thank you.

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※ Please note: This article was translated by AI and may contain errors.