Disputes mount over minister's alleged contact with court over tax ruling

By Shin Hae-in

SEOUL, Nov. 7 (Yonhap) -- The finance minister's alleged abuse of power concerning a pending ruling by the country's top tribunal snowballed into a social fracas Friday, as calls grew for the minister's dismissal and a delay of adjudication.

Finance Minister Kang Man-soo triggered dispute during a parliamentary session
Thursday when he hinted that he had discussed the legality of the controversial
tax on high-end homeowners with the Constitutional Court.
The top court denied the allegation, while Minister Kang said his "unclear
wording" had caused the misunderstanding. But opposition parties and civic groups
continue to accuse the minister and the court of misconduct.
It is against the law for the court to discuss or 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 is scheduled to rule on the case next week.
"Minister Kang, who attempted to undermine the independence of the Constitutional
Court, must be dismissed immediately," civic groups, including the Citizens'
Coalition for Economic Justice, said in a joint statement. "The chief judge
should also step down and the court should delay the scheduled ruling and restart
its examination into the case."
The Constitutional Court expressed regret over the incident through an official
statement released to the public. "It is a regretful incident that has caused
concern about the court's political neutrality and independence," it said.
The court, however, made clear the ruling on the case would still be made on Nov.
13 as scheduled, adding that no harm had been done to the fairness of its
decision-making process.
Rival parties, meanwhile, agreed to launch a parliamentary investigation into the
minister's alleged contact with the court.
"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. Kang is already
unpopular for allegedly exacerbating the current financial crisis through a
series of misguided economic policy decisions.
"I have never made contact with a Constitutional Court judge in any way," Kang
told a parliamentary session Friday. "I was quoting some officials who had
visited constitution researchers earlier. I am sorry for causing the
misunderstanding."
Kang's "slip" regarding the tax law 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 since it was first
imposed.