Posted on : Jan.26,2006 07:40 KST

President Roh Moo Hyun's New Year's press conference was disappointing. The people had hoped to hear sure policy directions and concrete plans for implementation on issues such as socioeconomic disparity, the low birthrate and society's ageing, and other national issues. But he never even presented the country with his principles on long-term spending and securing the needed financial resources.

On television a week ago, Roh said that there would be limits to what can be done by merely increasing the efficiency of annual expenditures and finances. He spoke of the need for discussion about more fundamental solutions and the responsibilities of society as a whole. At Wednesday's press conference, however, he backpedaled and said he would "study solutions that do not involve raising taxes," because "the people do not want" a tax increase. He essentially retracted on changing the directions of finances and tax policy and the need for discussion of those issues by society. It is hard to understand how he could take a topic you "cannot bring up if you consider politics and elections" and just a week later invoke realism as reason to forget the subject.

The future of the country's financial affairs is a subject that cannot be avoided any further. If increased spending and tax reform are unavoidable in doing something about the problem of socioeconomic disparity and if there is to be more in welfare expenditures, the president and the government need to show the country firm and concrete plans and persuade the people of their necessity.

There is inevitably going to be a great amount of controversy over the tax reorganization plan set to be released next month. From the perspective of taxpayers, fewer tax reductions and exemptions and increasing the tax base to better include the self-employed is the same as a tax hike. It will be hard for the government to pursue the plans it wants if it thinks it can have "the people's approval" without strong principles.


Roh needs to gravely accept the criticism that he circumvented the important principles and reality out of consideration for the elections. The future needs to begin with bringing normalcy to the functions of the public sphere, which crumbled in the face of rapid marketization. It must not be forgotten that the minimum of a welfare base and social security net is part of the natural role of the state.

The Hankyoreh, 26 January 2006.

[Translations by Seoul Selection]

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