S. Korea on path to become net debtor country: minister

SEOUL, Sept. 24 (Yonhap) -- South Korea is on its way to becoming a net debtor country amid a growing current account deficit and other toughening economic conditions, Finance Minister Kang Man-soo said Wednesday.

Inflationary pressure will continue to remain high due to the impact of higher
oil prices, while the current account deficit will grow to around US$10 billion
this year, Kang told a Seoul forum earlier in the day.
"We cannot unveil details at this moment, but currently South Korea is on a path
to become a net debtor country," Kang said. "High oil prices are expected to
create upward pressure on inflation during the second half and current account
shortfalls will be nearing $10 billion this year."
Kang said of the tax cut on ownership of high-priced properties announced the
previous day that it is the "most symbolic" of the government's economic polices
because it eases regulations deemed to run counter to market principles.
On Tuesday, the Finance Ministry announced its plan to raise the minimum tax base
for homes subject to the controversial comprehensive real-estate holding tax from
the current 600 million won ($521,740) to 900 million won. Tax rates will also be
revised downward from the current 1-3 percent to 0.5-1 percent.
"The Constitution says that people shouldn't pay taxes more than they can bear,"
Finance Minister Kang Man-soo said at the forum. "The comprehensive real estate
holding tax should be removed once and for all and that is the most symbolic
measure that the incumbent government is pushing for."
The comments come after the government-led tax measure sparked criticism from
opposition parties and some lawmakers, even from the ruling Grand National Party,
that the tax-cut measure is only for the elite and rich people.
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