President Lee Signals Strong Stance on 'December 3rd State of Emergency' Participants; Tax Reform on Hold

(C) The Edge Malaysia

SEOUL—President Lee Jae-myung is set to escalate the ruling Democratic Party's campaign to prosecute participants in the "12·3 State of Emergency" (or "Coup D'état") following his public statements suggesting the need for a Special Tribunal for Insurrection and a second special counsel investigation. Political analysts predict the focus on "cleansing the insurrection" will dominate the political landscape leading up to next June’s local elections.

 
Lee: "Cannot Avoid Surgery" for Coup Participants

In his "Special Address to the Nation on the 1st Anniversary of the Revolution of Light" on Wednesday, President Lee repeatedly emphasized the necessity of severe punishment for those involved in the events of December 3rd.

"The atrocity of destroying the constitutional order and even plotting war for private ambition must be judged," the President declared, stressing the gravity of the incident that occurred one year prior.

While stopping short of a formal endorsement, President Lee effectively threw his weight behind the proposals for a new special investigation and tribunal. The terms of the three initial Special Counsel investigations (Insurrection, Kim Keon-hee, and the deceased Marine) are set to expire soon.

"Even if the current Insurrection Special Counsel concludes, it will be difficult to simply cover up the situation, and a Special Investigation Headquarters should be established to continue the probe," President Lee stated. However, he quickly noted, "If the government steps into the insurrection investigation, it will lead to political controversy." This remark was interpreted as a clear signal that the investigation must be conducted by another Special Counsel (Special Prosecutor), not the existing police or prosecution services.

Regarding the establishment of the Special Tribunal for Insurrection, President Lee punted the decision to the National Assembly, saying, "The National Assembly will judge and decide well." However, he simultaneously empowered the legislative branch, which is dominated by the ruling party, by adding, "The legislature will exercise the authority granted by the Constitution well and properly serve the will of the sovereign people." The Democratic Party has already fast-tracked the related legislation through a subcommittee of the National Assembly's Legislation and Judiciary Committee.

Reiterating his resolve to settle the issue, President Lee used a stark medical analogy: "The festering area must be excised; we cannot avoid surgery." This follows his statement from the previous day, where he compared the necessary judicial process for the military coup to the handling of "Nazi war criminals."

 
Inflation Measures and Inheritance Tax Review

Turning to economic matters, President Lee acknowledged emerging inflationary pressures amidst the ongoing economic recovery and confirmed that countermeasures are being formulated.

"In comparison to the situation that persisted until the first half of the year under the previous administration, current inflation is quite stable," he assessed. He added, "The economy is now recovering at a significantly fast pace," which he believes will likely lead to "inflationary pressure." Lee vowed to "respond meticulously" to address the public's concerns about the high cost of living.

During a separate press conference with foreign correspondents at Cheong Wa Dae, President Lee was asked about high inheritance tax rates allegedly prompting wealthy citizens to leave the country. He conceded, "There are unreasonable aspects to it, and it is a matter that must be seriously considered."

However, the President immediately dampened expectations for immediate reform, stating, "At this stage, we have not been able to contemplate fundamentally restructuring the inheritance tax itself."

This statement suggests a possible backtrack on his promise made in a September press conference to reform the inheritance tax system, where he had said, "It is too cruel to force a family to sell their home and leave because of taxes after a death." Following the National Assembly's Finance and Strategy Committee's decision to table a bill that would have increased the personal deduction limit for inheritance tax, the President’s latest remarks suggest that the promised overhaul may be quietly shelved.