Parliament to investigate minister`s alleged contact with court over tax ruling

By Shin Hae-in
SEOUL, Nov. 7 (Yonhap) -- Rival parties agreed Friday to launch a parliamentary
investigation into the finance minister's alleged contact with the country's top
tribunal over a pending ruling on a real estate tax law, officials said.

Political disputes have been escalating over remarks made earlier by Finance
Minister Kang Man-soo, in which he hinted he discussed the legality of the
controversial tax on high-end homeowners with the Constitutional Court.
The top court has denied the allegation and the Finance Ministry dismissed the
comment as a "slip of the tongue." But opposition parties continue to accuse the
minister and the court of misconduct.
It is against the law for the court to discuss or make a comment on a pending
ruling.
In 2006, 80 Seoul residents filed a constitutional petition to repeal the tax,
which is paid in addition to regular property taxes by owners of high-end homes.
The court has yet to rule on the case.
"Two parliamentary committees will be conducting a probe to find out whether the
minister did contact the court, which is against the law," Choi Jae-sung,
spokesman of the main opposition Democratic Party told reporters after a meeting
between three floor leaders Friday. "We plan to demand the minister's dismissal
if this turns out to be true."
Opposition parties appear eager to see the minister sacked. He as already come
under fire for allegedly exacerbating the financial crisis through bad policy
decisions.
Kang's "slip" is also expected to trigger further debate over the government's
plan to overhaul the real estate tax system.
The conservative Lee Myung-bak government is pushing to adjust the real estate
tax bracket to lower payments by high-end homeowners, claiming the reform will
help resuscitate the sagging economy and boost consumption. Opponents, however,
say the policy is designed only to benefit the rich and will fan rampant real
estate speculation.
Currently, those owning homes worth 600 million won (US$522,000) or more are
subject to taxation, while the proposed plan would raise the bar to 900 million
won.
The ownership tax was first introduced in 2005 under the former Roh Moo-hyun
administration. Some have called it a punitive measure against the rich as it
levies additional taxes on high-value real estate holdings.
Many of the nation's conservatives and wealthy live in high-priced southern
Seoul, and have been fighting against the current tax system.
hayney@yna.co.kr
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