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Chapter 196

Capital Gains Tax on Foreign Stocks - 4

10 min read2,277 words

“What the hell happened?!”

Park Hyeonseop’s election camp.

With the Gwangju party convention an hour away, his aides gathered in one place with dark expressions. The atmosphere was wholly different from the previous meetings where nominations had been traded back and forth.

All of this chaos had begun with the last legally mandated debate.

Contrary to expectations that it would be an easy victory for Park Hyeonseop, a decisive clincher, he had failed to completely overpower Lee Chanho, and on several agendas, he had even been forced onto the defensive. Even the overwhelmingly favorable WebTube comment section had become more sympathetic to Lee Chanho by the time the debate ended.

That suspicious mood soon appeared in the opinion polls.

After the first party convention, the head-to-head race in which he had led by a wide margin of 14 percentage points had narrowed by the day, and the double-digit wall had collapsed.

—Well, that’s...

“Answer me already! The convention is in an hour. Do you think we have time to dawdle?!”

At the thunderous shout, the senior aide opened his mouth with difficulty.

—In the final poll... that is, the poll tallied yesterday at noon, the gap was 8 percentage points.

“E-eight percent? Then you’re saying the double digits have collapsed?!”

—But it can’t be considered an accurate poll. It was conducted in a hurry, so the sample size was only five hundred. It was a poll with a large margin of error.

The senior aide hurriedly offered an excuse, but it did not reach Park Hyeonseop’s ears.

The hardened faces of the other lawmakers already said everything. That public opinion had unmistakably changed after the last legally mandated debate... that no matter how wide the margin of error was, the gap was certainly no longer in the double digits...

As everyone fell silent, the party chairman, his faction’s leader, opened his mouth.

“Minister Park. Don’t be so swayed by every little rise and fall. In a way, we’ve only just returned to square one. The gap between Candidate Lee and you was originally around ten percent. Even if he’s caught up, it only means we’ve finally returned to that number.”

Was it because a person with some weight behind him had offered comfort?

Park Hyeonseop managed to compose his collapsed expression and continued speaking.

“Ha ha... When you put it that way, you’re right. I suppose I was being too impatient?”

“Yes, 8 percentage points is still an enormous gap. And how can convention voting be the same as a general vote? The party delegates and devoted party members still support you, Minister. Even if you’re pushed back somewhat in public sentiment, party sentiment will cover it.”

A party convention was, in truth, a contest where party sentiment mattered more than public sentiment.

Even if public opinion was poor, as long as party sentiment was firm, it was an electoral structure one could not lose. And party sentiment was far more favorable to Park Hyeonseop, who stood firmly to the left, than to the current administration, which had shifted slightly to the right.

—That’s right, Minister! We haven’t even opened the lid yet!

—In my view, these are sympathy votes. After all, he was prime minister, so if he gets crushed too badly, it looks pitiful. His supporters felt a sense of crisis and briefly rallied. But it won’t last!

At his aides’ consolations, Park Hyeonseop was able to gradually ease his mind.

“Yes, well, I think so too. No matter what, we’re family, comrades... I never wanted to beat Candidate Lee Chanho by too large a margin.”

—Ha ha ha...

“However, there is one thing that bothers me, and I’d like to address it.”

Park Hyeonseop’s gaze sharpened.

“Was I too gentle with him? Since he’s someone I’d have to embrace once the convention was over anyway, I went easy on him, but I didn’t expect Prime Minister Lee to do this to me.”

—Are you referring to populism?

“Yes. In all my years, this is the first time I’ve seen a tax-cut policy come out of the progressive camp. Though, well, this administration was far from progressive from the moment it was born.”

Park Hyeonseop spoke with force in his eyes.

“It’s appalling. To think talk of abolishing the capital gains tax would come from our camp.”

—That’s right. The reason Candidate Lee has gained momentum recently is also because of that capital gains tax abolition.

“Which is why I would like our election camp to prepare an extraordinary response as well.”

—By an extraordinary response, you mean...?

“You know, there are plenty. Policies for ordinary people.”

The aides immediately exchanged glances.

An eye for an eye, a tooth for a tooth... What he had just said meant they were to bring him populism that surpassed Lee Chanho’s. And there was not just one or two such measures. Raising the minimum wage for powerless workers, converting non-regular workers to regular employment, freezing electricity rates, public-sector jobs for the elderly... These were all policies that had proven quite effective under the administration before last, guaranteed box-office hits.

—As it happens, the camp is already preparing many pledges...

“Ah, you were already preparing them?”

—Yes. In truth, haven’t electricity and transportation fees risen too much lately? Our people are groaning under the burden of increased public utility charges.

“That’s right. President Kim Sangcheol has ignored the groans of the vulnerable far too much.”

—So I was thinking, what if we properly pushed a pledge to freeze public utility fees?

“That’s a good idea. But Seoul Metro and KEPCO are both facing no small deficits. Might there not be backlash? Prime Minister Lee Chanho seems likely to seize on that.”

—That would be seeing one thing and missing two! If he points that out, respond with the consumption-inducing effect.

—That’s right, Minister! Transportation costs have to be cheap for people to move around freely, and isn’t that how neighborhood commercial districts improve? Electricity has to be cheap so people can spend the money they save there on other goods.

—Even if the deficits of KEPCO and Seoul Metro approach 100 trillion won, the consumption-inducing effect will be close to 1,000 trillion won. Cheaper is always better.

—We must greatly increase substitute holidays as well! Office workers don’t have time to spend money right now. But only if we give them time to spend money will the consumption-inducing effect arise, won’t it?

—We must also increase public-sector jobs! Our elderly need to have fuller wallets for the consumption-inducing effect to arise!

—The minimum wage has been practically frozen for the past four years! It’s time to end this foolish policy. Because ordinary people’s wallets aren’t full, there has been no consumption-inducing effect at all!

As many good opinions gathered, Park Hyeonseop’s face grew pleased.

It had been a foolish thought. To think he had worried about losing an election with these geniuses at his side. Tax cuts favored the haves, but welfare was a good policy for the have-nots. It was obvious that this would be the perfect counter to the capital gains tax abolition Lee Chanho had put forward.

“As expected, our camp is overflowing with talent.”

—Ha ha.

He checked the time, now ten minutes before the convention, and lifted himself from his seat.

“With people like you beside me, even the Gwangju convention doesn’t feel particularly frightening.”

—Minister, stay strong! It wasn’t as if Prime Minister Lee was the only one who took part in the student movement.

—That’s right! How many people here haven’t showered in tear gas or held a Molotov cocktail? Gwangju is our hometown too!

Park Hyeonseop clenched his fist.

Here. This was the place... Gwangju, the home of the democratization movement and Lee Chanho’s political hometown. If he smashed him right here, his withdrawal would come within two days.

*

When the fierce Gwangju convention ended, the people of Lee Chanho’s camp gathered with restless expressions.

Fortunately, there was no second brawl.

In Gwangju, the capital of progressivism, only minor verbal arguments were exchanged; the misfortune of the two sides coming to blows did not occur.

There was relief at having safely finished the convention, but even better news arrived for Lee Chanho’s camp.

“How did it go?”

At Lee Chanho’s words, his secretary held out a single paper.

—Prime Minister, it’s certain. We’ve caught up significantly. Six percentage points.

Sighs of relief leaked out around them.

The flow was good. After the Gangwon convention, the gap between the two sides had widened to 14 percentage points, but after the legally mandated debate, it had shrunk to 8, and by the time the Gwangju convention ended, he had chased it down to 6.

“As expected of my hometown people. I benefited greatly from my comrades. Ha ha.”

For Lee Chanho, it was a chance snatched from the jaws of death.

In truth, Lee Chanho’s camp had already been resigned. If they failed to narrow the support gap even in Gwangju, there had even been talk that Lee Chanho should withdraw early and give a speech of support for the sake of party unity. But in Gwangju, he had captivated the crowd with a splendid speech and even achieved the feat of raising his approval rating.

“Everyone worked hard. Since we’re here, let me make one thing clear.”

—Yes, yes.

“Now that we’ve come this far, there will be no withdrawal halfway. I will finish this race to the end.”

It was a statement meant to encourage his aides, but also a warning.

He would absolutely complete the convention, so they should not try to keep a foot in both camps.

—I also believe that without a doubt. However, Prime Minister.

“Go ahead.”

—Park’s camp seems to have gotten desperate. They’ve started populism. Since the Gwangju convention, they’ve been pouring out massive pledges: minimum wage, jobs for the elderly, freezing public utility fees, and so on.

—Those cowardly bastards! How is abolishing an unreasonable tax the same as handing out budget money?!

—Prime Minister, then there’s no choice! We should persuade public opinion with even better pledges.

Lee Chanho smiled bitterly.

How much better would the pledges need to be to close a 6-percentage-point gap? A 30% increase in the minimum wage, doubling jobs for the elderly, freezing public utility fees for ten years... Would that be enough to persuade public opinion?

“Let’s think about that gradually. In any case, what matters now is that we’re catching up. There’s still a week left, so let’s give it more thought.”

After Lee Chanho dismissed the others, he turned his gaze to me, where I had been sitting like a sack of barley set down in the corner.

“Sejun, you chose the wrong career path.”

“...Pardon?”

“Someone who should be in politics is investing instead? Heuheuheu. Thank you. Thanks to the capital gains tax pledge you put forward, we’ve come this far.”

“Not at all. It was your life’s achievements that brought us this far, Prime Minister.”

He smiled bitterly.

“But, you see... That’s exactly why I’m sorry.”

“...”

“Six percent... Six percent. If this had been last week’s poll, it would have been wonderful, but unfortunately, only one week remains. To be honest, I couldn’t say this in front of the others, but after speaking with people close to me, I think this is the limit.”

“Prime Minister!”

“It’s the conclusion I reached after much thought. The convention rules aren’t only based on public polling; party member opinion also accounts for 50%, and that’s unfavorable to me. But what is politics? Isn’t politics about losing well when you lose, so there can be a next time?”

I clenched my fist.

“Surely you’re not going to withdraw halfway?”

“Cashing in your chips before going down is also a strategy. In truth, Minister Park’s proposal has come through several channels. If I withdraw now, he’ll guarantee me a certain amount of nomination rights... And from my position, it’s difficult to refuse. Isn’t this precisely when my value is at its highest?”

He did not seem particularly despondent. On the contrary, his tone was frighteningly calm.

Withdrawing during an election after being guaranteed positions was common... In truth, while he had caught up a great deal, a 6-percentage-point gap was still enormous. It was not a gap that could be overcome in a week.

If he was going to lose anyway, it might be more politically correct to cash in and secure a few seats before bowing out.

“...Then let’s release it.”

But I could not accept it.

“What?”

“The cabinet files I gave you, Prime Minister. The construction companies paying pocket money to Minister Park’s close associates, and the political funds they received from me—let’s release them now. That much should be enough to overturn a 6% gap.”

“Sejun, I’m suggesting that I give up halfway for your sake as well. Why are you so determined to draw blood? Do you think only those bastards will get hurt? You’ll be hurt even worse.”

“Then can you get the pension reform bill passed?”

“...What?”

“I’m asking whether you can get the pension reform bill passed if the party leadership goes to Minister Park. The promise you made to me.”

The way his face froze said everything. They might concede a few nomination slots, but they would not pass the pension reform bill.

“Why on earth must it be now...”

“If not now, it can’t be done. Both the political landscape and the economic landscape are such that, if not now, this bill can never be passed.”

I spoke as if pleading.

“I’m the one who will bleed anyway, aren’t I? Prime Minister, please keep your promise!”

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