Conservative former People Power Party leader Han Dong-hoon on Tuesday pledged tax benefits and job creation to support the middle class if he wins the upcoming early presidential election.
Han announced his presidential bid for the June 3 election last week, while pledging to defeat Rep. Lee Jae-myung, the presidential front-runner, former leader of the liberal main opposition Democratic Party of Korea.
Unveiling a policy road map centered around his new campaign pledge to open “an era of middle class growth," Han said he seeks to expand “family-friendly” tax benefits.
“Even if the nation’s gross national income per capita reaches $40,000, if taxes feel overwhelming, then the lives (of the people) can only be tough,” Han said during a press conference held at the National Assembly in the morning.
South Korea’s roads towards the goal of reaching the $40,000 threshold for its per capita GNI have been sluggish in recent years, though it has surpassed the GNIs of Japan and Taiwan for two consecutive years, recent Bank of Korea showed. Korea’s per capita income came to $36,624 in 2024, remaining within the $30,000 range for over a decade.
Mentioning breaking the $40,000 barrier as his key goal, Han said that the standard income tax deduction will be increased from the current 1.5 million won ($1,055.62) to 2 million won per person. Tax deductions for households with children will be raised, and other additional benefits for those taking parental leave will be established.
The inheritance tax system would be overhauled from the current levying of tax on the entire estate to on each inheritor’s individual share. Under the current system, taxes are levied on the total estate of the deceased before distribution.
To boost job creation, Han vowed to launch a comprehensive welfare system that helps each and every individual find a job that could cater to their needs and interests.
Han pledged to invest 150 trillion won ($105.3 billion) to fund the country’s artificial intelligence industry for the next five years, making South Korea one of the top three global AI powerhouses.
“If we’re targeting to become (one of the top three countries), 150 trillion won investment in data centers, computing hardware and semiconductors, for the next five years is not excessive,” he said.
The size of the investment is more than the 100 trillion won former Democratic Party leader Rep. Lee Jae-myung pledged to invest in South Korea's AI industry on Monday.
“The most important thing is that the goal of becoming one of the top three AI powerhouses is aligned with the people’s lives here,” Han said. “I plan to make AI create jobs, contribute to raising children, fostering education and help return its state investment to each and every one of our people through a new welfare system.”
Han, 52, is a former career prosecutor whose relationship with ex-President Yoon Suk Yeol goes back over 20 years to when the ousted president himself was a career prosecutor. As a team, they put former presidents Lee Myung-bak and Park Geun-hye behind bars.
In May 2022, Yoon appointed him as his first justice minister -- the youngest in South Korean history at the age of 49.
But a rift began to grow between the old partners when Han became interim leader of the ruling People Power Party after stepping down as justice minister in December 2023. Han voiced criticism and disagreements on how Yoon was dealing with the scandals surrounding his wife, now-former first lady Kim Keon Hee.
Han stepped down from his interim leader position soon after the Assembly passed the motion to impeach Yoon.
South Korea is set to hold an early presidential election on June 3, after the Constitutional Court unanimously ruled to remove Yoon from office earlier this month.
mkjung@heraldcorp.com
