Gangnam Real Estate Prices Rise After End of Capital Gains Tax Exemption The real estate market is difficult to read. Owning a home is equally challenging. Government policies are no exception. This is where the tough 'real estate' perspective begins. The administration of President Lee Jae-myung has focused on stabilizing housing prices, starting in Gangnam. Since taking office, President Lee has prioritized housing price stabilization, stating, "We will do whatever it takes to control housing prices." He implemented a series of measures, including land transaction permits, total loan management, and the resumption of increased capital gains taxes for multiple homeowners. Gangnam was the target, as it symbolizes Seoul's housing market and serves as a litmus test for regulatory effectiveness. On February 3, he shared a report on social media about an increase in listings in the three Gangnam districts, calling out reports claiming there was no effect or that listings were not emerging as "nonsense." However, after the third week of February, apartment prices in the three Gangnam districts began to decline, with Gangnam experiencing 12 weeks of stagnation or decline. Analysts noted that the cumulative regulations were holding back the Gangnam area, leading to comments that "this government is different," suggesting that the policies were having an impact. However, the market responded differently. On May 9, the exemption for increased capital gains tax for multiple homeowners ended. In the second week of May, apartment prices in Gangnam rose by 0.19%. The belief that the policies were effective began to waver, along with the expectation that taxes would drive listings out and suppress Gangnam prices. Of course, one week of price increase cannot definitively determine the success or failure of a policy. What matters is not just the rate of increase but why Gangnam began to move right after the end of the capital gains tax exemption. This timing itself illustrates the paradox of the policy. The moment taxes lock away listings Taxes present sellers with two choices: sell now and pay taxes or hold off and wait. If the tax rate is manageable, taxes encourage sales, prompting sellers to list properties before the burden of ownership increases. This was the effect the policy aimed to achieve before the end of the capital gains tax exemption. However, when the highest tax rate reaches 82.5%, including local income taxes, the calculations change. When sellers feel they will gain nothing from a sale, taxes become a deterrent rather than a motivator. The heavier the tax burden, the more listings tend to lock up rather than increase, creating a paradox. Properties that were listed before the exemption ended were quickly absorbed. However, homeowners who remained after the exemption ended chose to hold onto their properties. According to the real estate big data platform Asil, over 6,800 apartment listings in Seoul disappeared within a week after the exemption ended. The decline was particularly rapid in non-Gangnam areas such as Guro District (-16.6%), Gangbuk District (-15.2%), and Seongbuk District (-14.1%). As the number of available properties decreased, buyers faced fewer options. In a market where demand remains, a reduction in supply strengthens price support. In real estate, supply does not only refer to new apartment units but also includes existing listings. When taxes fail to motivate sellers and instead lock away listings, market supply diminishes. The government aimed to suppress demand, but in reality, a decrease in supply was the first outcome. When taxes exceed the threshold that pressures sales, they become a mechanism that locks away listings. The recent rebound in Gangnam illustrates where that boundary lies. This paradox is not new. The real estate policies of the Roh Moo-hyun and Moon Jae-in administrations were also subject to this cycle. Regulations aimed at suppressing demand reduced transactions, and the decrease in transactions increased scarcity—a pattern that has repeated itself. As regulations intensified, sellers had greater incentives to hold off. When taxes and loan regulations push demand out of the market, that demand does not disappear but rather lies dormant. The moment a small crack appears, prices return. The recent rebound in Gangnam occurred within that familiar cycle. Gangnam was not a leader but a last bastion More important than the fact that Gangnam prices have risen is that Gangnam was the last to do so. For a long time, Gangnam has been a leading indicator in Seoul's real estate market. Prices in Gangnam would rise first, followed by Mapo, Yongsan, and Seongdong, and then the warmth would spread to the outskirts of Seoul and the metropolitan area. However, this time the order was different. Seoul moved first, and Gangnam joined last. According to the Korea Real Estate Agency, the average increase in the 11 districts of Gangnam was 0.24%, while the average for the 14 districts in Gangbuk was 0.32%. Seongbuk District saw a 0.54% increase, and Jongno District recorded a 0.36% increase, marking the highest weekly rates since 2012. While Gangnam's 0.19% rise is notable, the speed of increases in Gangbuk and non-Gangnam areas is more significant. While Gangnam remained stagnant for 12 weeks, districts like Gangseo, Seongbuk, and Gwanak in non-Gangnam areas built momentum that exceeded the average for Seoul. While Gangnam was restrained, the upward pressure across Seoul remained uncontained. This does not mean Gangnam has collapsed. On the contrary, it indicates that in this phase, Gangnam is not the starting point of the rise but rather the last line of defense. The fact that Gangnam has begun to move again suggests that the symbolic price level, which the government had been holding onto, is now shaking. The rental market had already begun to signal this shift. According to Asil, the number of rental listings in Seongbuk District dropped to 174 on May 14, down from 1,027 a year ago, representing just one-sixth of the previous level. As rental listings decrease, tenants face fewer choices. They may have to accept higher rents, switch to monthly rentals, or return to purchasing homes. This pressure has also affected the sales market. In Seongbuk District, the Gileum New Town 9 complex's 84㎡ units have repeatedly set new price records this year, indicating that buying interest in non-Gangnam areas has already begun to heat up. By the second week of May, apartment rental prices in Seoul had risen by 2.89%, continuing a 66-week streak of increases. This is not just a sales issue but a broader cost of living concern. While headlines have recently focused on Gangnam's price rise, the market had already been moving under the pressures of rental shortages and rising prices in non-Gangnam areas. Demand for Gangnam cannot be explained solely by investment interest. It is a structural demand driven by factors such as school districts, proximity to workplaces, and expectations of redevelopment. Such demand does not disappear under tax pressures. When it remains outside of transactions, it can return to the market once price cracks appear. When regulations aimed at Gangnam reduce the number of properties available for sale, the scarcity of Gangnam increases. The number of buyers remains while the number of sellers decreases, creating a structural imbalance. Concerns about supply also compound the situation. According to Real Estate R114, the number of new apartment units in Seoul is expected to drop from around 17,000 this year to about 8,000 by 2028. If tax changes were the direct trigger for Gangnam's rebound, the rental crisis and supply shortages have already been structural pressures pushing the market upward. The warning left by Gangnam's May rebound The May rebound in Gangnam is not just a simple price change over a week. It signals how taxes operate within the market. The government aimed to draw listings through taxation, but instead, the market saw a reduction in listings after the exemption ended. When taxes fail to change seller behavior, regulations tend to lock away supply rather than suppress demand. The next variable is the tax reform in July. Strengthening property taxes for non-resident homeowners and reducing long-term holding tax exemptions are being discussed. However, the lesson from the current capital gains tax situation is clear. More important than imposing heavier taxes is ensuring that actual listings emerge. If sellers tilt their calculations back toward 'holding rather than selling,' the market is likely to respond in kind. Taxes can be a tool to suppress housing prices. However, once they lock away listings, they become a mechanism that supports prices. The warning left by Gangnam's May rebound lies here: the critical factor is not the intensity of the tax but whether it draws sellers into the market or keeps them locked out. 2026-05-18 06:56:11

Trump and Xi Confirm Joint Goal of North Korean Denuclearization Donald Trump, the President of the United States, and Xi Jinping, the President of China, have confirmed their joint goal of denuclearizing North Korea. This comes amid speculation that the Trump administration may effectively recognize North Korea as a nuclear state, as the White House officially included "North Korean denuclearization" in its documents. On May 17, the White House released a fact sheet from the US-China summit, stating that Trump and Xi "confirmed their joint goal of denuclearizing North Korea." The White House noted that this summit marked the first visit by a U.S. president to China since 2017, emphasizing that the two leaders reached consensus on various issues to enhance stability and trust for global businesses and consumers. However, no specific roadmap regarding North Korean denuclearization was disclosed. Details on negotiation methods, China's pressure tactics on North Korea, and the timeline for resuming U.S.-North Korea dialogue were not included in the fact sheet. While the statement is largely declarative, the confirmation of denuclearization as a joint goal by the two leaders in an official document could serve as a reference point for future discussions on North Korea. The White House also outlined the fundamental direction of the bilateral relationship. The fact sheet indicated that the U.S. and China agreed to build a "constructive strategic stability relationship" based on fairness and reciprocity. Xi is expected to visit Washington this fall, and both countries agreed to support each other as hosts of the upcoming G20 and APEC summits. Middle Eastern issues were also addressed. Both leaders agreed that Iran should not possess nuclear weapons. They called for the reopening of the Strait of Hormuz and expressed that no country or organization should impose tolls on passage through it. The issues of North Korean denuclearization, Iran's nuclear situation, and the Hormuz transit were presented as security concerns. In the economic sector, the establishment of a U.S.-China trade and investment committee was highlighted as a key achievement. The two nations agreed to create a trade committee and an investment committee. The trade committee will manage trade between the two countries, focusing on non-sensitive items, while the investment committee will serve as a forum for discussing investment-related issues between governments. The White House emphasized China's commitment to purchasing more U.S. products and expanding market access. China agreed to address U.S. concerns regarding disruptions in the supply chain of rare earths and critical minerals. Additionally, it was decided that China would approve an initial purchase of 200 Boeing aircraft for its airlines. China also committed to buying at least $17 billion worth of U.S. agricultural products annually from 2026 to 2028 and to renewing registrations for over 400 U.S. beef facilities and resuming poultry imports. The situation on the Korean Peninsula was also discussed in a call between Trump and South Korean President Lee Jae-myung. According to Reuters, Trump explained the outcomes of the US-China summit during their conversation. The two sides discussed U.S.-China relations, economic and trade agreements, the Korean Peninsula situation, and the Middle East. Trump expressed his intention to work closely with South Korea to contribute to peace and stability on the Korean Peninsula.* This article has been translated by AI. 2026-05-18 06:53:05

Messi Aims for World Cup Goal Record as Ronaldo Targets Scoring Streak Lionel Messi of Argentina and Cristiano Ronaldo of Portugal, two giants of world soccer for over two decades, are set to challenge for records in their sixth FIFA World Cup. The 2026 North America World Cup, co-hosted by the United States, Mexico, and Canada, will kick off on June 12 with a match between Mexico and South Africa, running through July 20. This tournament is expected to be a significant milestone, as it may mark the last World Cup appearance for both Messi and Ronaldo. Born in 1987, Messi made his World Cup debut in 2006 in Germany and has since participated in four tournaments. He is now aiming to become the first player to appear in six consecutive World Cups. Messi is also pursuing the record for the most goals scored in World Cup history. He has netted 13 goals in 26 matches across five World Cups, placing him tied for fourth all-time with Just Fontaine of France. Above him are Gerd Müller of Germany with 14 goals, Ronaldo of Brazil with 15, and Miroslav Klose of Germany with 16. If Messi scores three more goals in the North America tournament, he will tie for first place; four goals will make him the sole record holder. The possibility is strong, as Messi, who plays for Inter Miami in Major League Soccer (MLS), has demonstrated his enduring talent by winning the league's Most Valuable Player (MVP) award for two consecutive years. Last season, he led the MLS with 35 goals and 21 assists, and he currently ranks second in scoring this season with 11 goals and four assists. Additionally, the expansion of the tournament from 32 to 48 teams may provide more opportunities for Messi to break records. Born in 1985, Ronaldo is also pursuing a new milestone by aiming to score in his sixth consecutive World Cup. Like Messi, he made his World Cup debut in 2006 and has played in five tournaments, scoring eight goals in 22 matches. Ronaldo is the only player in World Cup history to have scored in five consecutive tournaments. Ronaldo is also focused on achieving a World Cup victory, a feat he has yet to accomplish. He won the UEFA European Championship in 2016 but his best World Cup finish remains fourth place, achieved in the 2006 tournament in Germany.* This article has been translated by AI. 2026-05-18 06:49:06

Marina Abramović's 'Transforming Energy' Exhibition Opens at Venice's Accademia Gallery On May 7, the Accademia Gallery in Venice opened a solo exhibition titled 'Transforming Energy' by Serbian performance artist Marina Abramović, 80. This exhibition marks Abramović as the first living female artist to showcase work at the gallery, which has a history spanning over 200 years. 'Transforming Energy' resembles a mineral spa. Visitors, wearing large earplugs, set aside their smartphones to meditate or take a nap. They leaned against mineral objects installed on the walls for relaxation or lay on wooden beds to absorb the energy emanating from the minerals. Objects reminiscent of Abramović's long black hair gently swayed, brushing against the heads and backs of attendees. Many found themselves drifting off to sleep. Upon leaving the exhibition, visitors felt refreshed, as if they had just emerged from a spa after a good rest. Abramović's works are strategically placed throughout the gallery, harmonizing with Renaissance masterpieces. Notably, her piece 'Pieta' (1983/2002) is positioned directly across from Titian's renowned 'Pieta' (1575-1576), which depicts the Virgin Mary holding the deceased Jesus Christ. Abramović's 'Pieta' is a photographic documentation of a 12-minute performance she presented with her partner Ulay in 1983. The juxtaposition of these two works evokes universal human emotions such as sacrifice and love that transcend time. The exhibition runs until October 18. * This article has been translated by AI. 2026-05-18 06:15:00

Brazilian Artist Paulo Nazareth's 'Algebra' Exhibition Explores Violence and Memory On May 5, at the Punta della Dogana in Venice, a 344-year-old building that once served as a customs house, Brazilian artist Paulo Nazareth's solo exhibition 'Algebra' was underway. The exhibition created a unique harmony as the venue, space, and artworks interacted with each other in a tense yet compelling manner. Transformed into a museum as part of the Pino Collection by architect Tadao Ando, the floor of the venue featured large circular outlines drawn in white salt by Nazareth, representing the contours of the slave ship 'tumbeiro.' As visitors walked over the salt, it scattered, bringing to light the painful history and scars hidden beneath Venice's glamorous landscape. Salt carries dual meanings. It was a trade commodity that supported colonial economies, preserving food for slave ships while adding bitterness to wounds. Yet, it also symbolizes healing and purification, warding off decay and misfortune. For some, the salt that fueled the greed of merchants represents the bitter pain or tears of mourning. Venice was once a hub for the salt trade. Visitors to Nazareth's salt slave ship on this artificially constructed island awaken from forgetfulness to witness a history of violence and exploitation. At the Korean Pavilion in the Giardini during the Venice Biennale, salt also serves as a medium of mourning. Nobel laureate Han Kang's sculpture 'The Funeral' features a blackened, dried branch stuck into a mound of salt. The piece evokes the Jeju 4·3 incident, which nearly faded away with the tide. It stands out in an otherwise subdued Korean Pavilion, prompting reflections on a past that cannot be forgotten or should not be forgotten. Standing on Floating Tombs In the past, salt was stored at Punta della Dogana. The Venetian Republic dominated Mediterranean trade based on its salt monopoly. Salt was a valuable commodity, representing wealth and power. Nazareth drew the outline of the 'tumbeiro,' a slave ship, with salt in this very location. The tumbeiro was a collective grave for Africans forcibly transported to Brazil. Sailors filled the ship with salted food for long voyages, but countless kidnapped Africans perished on the slave ship due to disease, starvation, and violence. Visitors unknowingly step over the lines of salt on the floor, boarding a ship of death excluded from history, calling forth forgotten deaths and mourning the era of domination and violence. Efforts to restore identities destroyed by colonial rule and genocide are also prominent. Shoes collected by the artist from border areas are arranged facing outward, symbolizing the restoration of identities shattered by colonialism. In the past, Africans had to erase their identities while circling the 'Tree of Oblivion' before being taken as slaves. The left shoes in the exhibition seem to serve as a mourning ritual, recalling the names and memories that were erased from those who were lumped together as 'slaves.' Set against the backdrop of Venice's canals, a childlike drawing of a refugee boat reminds us that struggles for survival continue somewhere at sea. Fragile boats made from dirty sandals contrast sharply with the water taxis gliding past the exhibition windows. This juxtaposes leisure tourism with desperate escapes, highlighting two very different forms of movement. Raising the Tombs I wondered. Are these trees all tombstones? I walked among the blackened trees, with snowflake-like salt crystals resting on their cut surfaces, and the mounds behind them. (Han Kang, We Do Not Say Goodbye (Munhakdongne), p. 9) Han Kang's sculpture 'The Funeral' features a stark tree set on a mound of salt. It represents countless men, women, and thin children huddled against the cold, facing the snow. The piece serves as a mourning for those who have faded away. The blackened trees resemble the countless wooden piles supporting the foundations of Venice, built on mud and sea. The violence and scars buried beneath the beautiful landscapes of the artificial island of Venice and the natural island of Jeju overlap. Both exhibitions will run until November 22. 2026-05-18 06:12:00

Government Plans Major Overhaul of Real Estate Tax System The South Korean government is expected to announce a significant reform of the real estate tax system in July, moving beyond merely reducing special exemptions to a phase of normalization. The policy focus is shifting toward a resident-centered approach and addressing market distortions, which is likely to result in a general reduction of various tax benefits. According to the Ministry of Economy and Finance on May 17, the long-term holding special deduction (장특공) for capital gains tax is among the first items under review in this reform. Currently, homeowners with one property can receive a deduction of up to 80% based on the length of ownership (40% per year) and the duration of residence (40% per year). Deputy Prime Minister and Minister of Economy and Finance Ku Yun-cheol stated on May 8 that the real estate market is transitioning from a previous overheating phase to one focused on actual residency, indicating a commitment to policy reform. As a result, the government is reportedly considering increasing the weight of residency duration in calculating the long-term holding deduction. Previously, long-term ownership alone qualified for tax benefits, but the new approach would adjust the deduction based on actual residency. This means that the duration of actual residence will become a key factor in taxation, rather than merely the period of property ownership. Additionally, tax benefits for housing rental businesses, introduced to stabilize the rental market, are also likely to be revised. In particular, the exemption from increased capital gains tax for landlords in designated adjustment areas is a major target for reform. Critics have long argued that the rental business system has allowed multiple property owners to reduce their tax burden while expanding their assets. Consequently, the government is reportedly considering reducing existing benefits or allowing them to expire. Property taxes, including comprehensive real estate taxes, remain a sensitive issue. While the current trend maintains a focus on reducing tax burdens, ongoing criticism highlights a lack of equity in asset taxation. Raising property taxes could encourage multiple property owners to list their properties for sale, but there are concerns that this could also increase the housing cost burden on low-income residents through rent hikes. Maintaining the current tax structure could stabilize the market and reduce tax resistance, but it may also exacerbate asset polarization and weaken the tax base, potentially leading to ongoing debates about so-called "tax cuts for the wealthy." On the other hand, strengthening tax burdens could enhance equity in taxation and encourage an increase in property supply, but it also carries the risk of driving up rental prices. However, some experts argue that tax reforms alone may not be sufficient to stabilize real estate prices. Yoon Ji-hae, head of the Real Estate R114 Research Lab, noted, "It has not been sufficiently proven that taxes directly control real estate prices," suggesting that lowering transaction taxes might be a more effective approach to stimulate market activity. She added, "Realistically, the likelihood of a homeowner returning to being a non-owner is low," and indicated that those eligible for the long-term holding deduction are likely to purchase another property in a different area even if they sell their current one.* This article has been translated by AI. 2026-05-18 06:09:59

Debate Reignites Over Financial Investment Tax Amid Cryptocurrency Taxation Plans The debate over the potential reintroduction of the Financial Investment Income Tax (FIIT) is resurfacing as discussions about the taxation of cryptocurrencies gain momentum. With the implementation of cryptocurrency taxation set for next year, how to ensure equitable taxation between stocks and digital assets has become a key issue in tax reform discussions. According to sources in the financial sector on May 17, there is a growing call among government and political circles to overhaul the entire capital market taxation system. As the stock market thrives and capital gains increase, there is a rising awareness of the need for consistent tax standards across different asset classes as the deadline for cryptocurrency taxation approaches. In this context, discussions about the FIIT are also re-emerging. The FIIT was introduced during the Moon Jae-in administration under the principle of taxing income where it is generated, applying to net profits exceeding 50 million won from domestic stock investments. While the government emphasized the need for rationalizing the financial income tax system and enhancing equity, individual investors strongly opposed it, citing the potential for double taxation alongside the securities transaction tax. As the domestic stock market stagnated and concerns about weakened investor sentiment grew, the FIIT was effectively abolished just before its planned implementation in 2024. Recently, changes in the stock market environment have reignited discussions about the FIIT. The KOSPI has entered a new era, surpassing the 7,000 mark, and the ongoing AI rally has led to unprecedented increases in capital gains. Analysts note that the market's strength has significantly changed compared to when the FIIT was being debated. Additionally, the taxation of cryptocurrencies has emerged as a new variable. The government is preparing to impose a 22% tax rate on capital gains from cryptocurrency transactions starting next year. However, concerns have been raised that if stocks remain effectively tax-exempt while only cryptocurrencies are taxed, it could undermine equity in taxation across asset classes. Experts emphasize the need to evaluate both the necessity of taxation and the effectiveness and acceptability of the system. Bae Jin-soo, a researcher at the Korea Financial Research Institute, stated, "While the need for cryptocurrency taxation may be justified from a revenue perspective, it is essential to assess whether the actual revenue will be stable and whether it is an efficient tax measure when considering collection costs and taxpayer compliance costs. We must also consider the impact of taxation on the domestic cryptocurrency industry and investor protection comprehensively." Market analysts believe that the taxation systems for stocks and cryptocurrencies are likely to be adjusted together. If cryptocurrency taxation is implemented as planned, some adjustments to the stock taxation system will be unavoidable. Conversely, if discussions on the FIIT are delayed or its reintroduction is abandoned, there may be increased pressure to adjust cryptocurrency taxation as well. Concerns have been raised that applying taxation to only one asset class could distort the movement of investment funds. The government is also maintaining a cautious stance, aware of potential market shocks. Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol has stated, "The Korean stock market is still at a lower level compared to advanced countries," adding that the introduction of the FIIT should be considered only after sufficient market conditions have been established. Researcher Bae emphasized, "While major countries have introduced cryptocurrency taxation based on social acceptance of existing capital gains tax systems, Korea is pushing for cryptocurrency taxation in a context where the foundation for capital gains taxation is relatively weak due to the abolition of the FIIT. A fundamental discussion on the basis and acceptability of taxation is necessary." * This article has been translated by AI. 2026-05-18 06:06:32

Government Signals Shift to 'Primary Residence' Focus in Real Estate Taxation The government is preparing a comprehensive redesign of the asset taxation system, focusing on real estate taxation ahead of next year's tax reform announcement. The core of this initiative is a shift from simple tax rate adjustments to a framework centered on 'primary residence and investment income taxation,' which is expected to have significant repercussions across the real estate and financial markets. According to the Ministry of Finance and Economy, the government plans to unveil the tax reform proposal by the end of July. At the heart of this reform is the real estate tax system. Following the expiration of the temporary exemption on capital gains tax for multiple homeowners on May 9, the government is seriously considering shifting the long-term holding special deduction from a holding period focus to a primary residence focus. This change aims to move away from a structure that previously rewarded mere ownership to one that adjusts tax burdens based on actual residency. Additionally, the government is reviewing the reduction of tax benefits for rental business operators. The exemption from capital gains tax for rental business operators in designated adjustment areas has faced ongoing market distortion controversies, prompting the government to formalize its intention to reassess this policy. Strengthening residency requirements while reducing tax support for investment holdings could lead to market structural changes, including an increase in available properties. Deputy Prime Minister and Minister of Finance and Economy Ku Yun-cheol stated during a press briefing on May 11, "Real estate should no longer be viewed as an asset for profit but approached with a focus on housing stability," clearly indicating a policy direction to redefine real estate as a 'housing asset' rather than an 'investment asset.' The potential revision of property taxes is also a key variable. Within the government, there is a cautious sentiment regarding the immediate reinforcement of property taxes. Concerns have arisen that raising property taxes could exacerbate instability in the housing market, particularly as signs of price volatility emerge in the Gangnam area of Seoul. However, as the principle of residency-based taxation is strengthened, the need to adjust burdens for multiple homeowners and non-residential property holders is likely to remain a topic of discussion. Consequently, rather than uniformly increasing property taxes, proposals to differentiate tax rates based on residency status and ownership purpose are gaining traction. The burden on primary homeowners would be maintained, while tax equity would be enhanced for high-value, non-residential, and investment properties. Observers suggest that if the revisions to the long-term holding special deduction and the reduction of rental business operator benefits are realized, the property tax system may also be readjusted in the same direction over the long term. The introduction of a financial investment income tax is likely to be postponed for the time being. On May 12, Deputy Prime Minister Ku indicated during a cabinet meeting that it would be a matter to be considered once market conditions are sufficiently established, suggesting that the timing is not yet right. However, this could raise issues of equity with regard to cryptocurrency taxation. The government is preparing to apply a 22% tax rate on capital gains from cryptocurrency transactions starting next year. If taxation on cryptocurrency is implemented before capital gains tax on stocks, it could lead to inevitable debates over tax equity among different asset classes. In addition, a comprehensive review of tax expenditures is underway. The government plans to reassess the temporary relief measures expanded during the COVID-19 response and eliminate ineffective tax supports. However, in the National Assembly, bills demanding the extension of sunset provisions have been introduced, indicating a growing struggle over policy direction. Adjustments to the taxable income standards for comprehensive income tax are also of interest. The current tax base system has been in effect since the 2023 tax year. To address the fixed structure of tax brackets amid rising prices, there are calls in the political arena for the introduction of an 'income tax inflation linkage system' that would automatically adjust thresholds based on inflation rates.* This article has been translated by AI. 2026-05-18 06:03:00

Trump's Comments on Taiwan Spark Concern in Taipei "Trump's public statement about being willing to negotiate with Beijing on Taiwan is akin to waving a red flag in front of a bull," said Ryan Hass, director of the China Center at the Brookings Institution. Following President Donald Trump's remarks during his recent visit to China, where he referred to arms sales to Taiwan as a "very good negotiating chip," international attention has intensified. His comments suggest that arms sales to Taiwan could be leveraged in future negotiations with China. On May 17, Reuters reported that Taiwan's President Tsai Ing-wen emphasized on Facebook that "peace and stability in the Taiwan Strait can never be sacrificed or traded away," asserting that Taiwan will not abandon its sovereignty, dignity, or democratic way of life under external pressure. She also pointed out that arms sales to Taiwan are based on the Taiwan Relations Act established after the U.S.-China normalization in 1979, which has served as a strong deterrent for decades. China has ramped up its rhetoric against Taiwan through state media. The Global Times stated, "Trump's remarks reaffirm that the U.S. will not indefinitely support 'Taiwan independence' as some have dreamed," adding that Trump emphasized the U.S. would not fight a war for Taiwan, despite being 9,500 miles away. The publication also noted that the pro-China Kuomintang's Vice Chairman, Xiao Xuchuan, analyzed that Trump's comments could politically impact President Tsai. Amid rising tensions, some close aides to the Trump administration have expressed concerns about the possibility of a Chinese invasion of Taiwan within the next five years, Axios reported. Although China welcomed Trump with elaborate ceremonies, the underlying message is that China views itself as an equal superpower to the U.S. and asserts that Taiwan belongs to China. One aide remarked that the likelihood of Taiwan coming to the U.S.-China negotiation table has increased, stating, "The semiconductor supply chain will not reach self-sufficiency in the U.S., and there is no issue more critical to the economy than this." As the controversy deepens, the U.S. government appears to be working to clarify its stance. According to Politico, U.S. Trade Representative Jamie Greer emphasized in an interview with ABC that there is no change in U.S. policy toward Taiwan. Greer stated, "The president is focused on confirming that nothing is happening in the Taiwan Strait," adding that Trump will decide the timing and execution of arms sales to Taiwan. According to the New York Times, the Taiwanese government has been awaiting White House approval to import $14 billion worth of U.S. weapons, including drone defense systems and air defense systems, over the past few months. Trump had previously mentioned to reporters that he discussed arms sales to Taiwan with President Xi during his return from China aboard Air Force One. 2026-05-18 05:39:56

The Rise of Voice Phishing: Is Financial Education Keeping Up? Recent news and films often evoke a sense of unease. The barrage of phone calls and text messages can make it difficult to enjoy daily life. From the movie "Voice" to reports of voice phishing-related deaths, and the prevalence of romance scams and online fraud, financial crime has infiltrated our everyday existence. During the day, unsolicited calls about insurance and mobile phone upgrades flood in, while weekends bring requests to participate in various election polls. Stock trading advertisements constantly appear via text messages. Even when we block numbers or filter certain words as spam, our peaceful routines and sometimes our finances are repeatedly disrupted. Financial literacy among adults in South Korea is not as high as one might expect. As finance becomes increasingly complex and shifts toward online and non-face-to-face interactions, financial understanding continues to decline. While it is slightly above the OECD average, the downward trend persists, particularly among young adults in their 20s, seniors in their 70s, and low-income groups. A significant reason for financial victimization is the allure of profit. Many individuals are tempted by the prospect of high returns from high-risk investments, often lured by promises of quick wealth. The sophistication of voice phishing tactics has also increased with advancements in AI and digital technology, leading to a rise in reported cases. In response, financial education will be introduced in high schools this year through a new curriculum titled "Finance and Economic Life." While financial subjects have existed in some form, they were previously included in the 2022 revised curriculum as elective courses in high school social studies. The current textbooks are divided into four main sections: 1) Happy and Safe Financial Living, 2) Income and Expenditure, 3) Saving and Investment, and 4) Credit and Risk Management. Historically, high school economics textbooks have been around 200 pages, and the new financial textbooks are similarly structured, with each section comprising about 50 pages. However, considering real-world applications, the content and length should be adjusted for practicality. There is a pressing need for a continuous financial education program from elementary through high school. Finance can yield profits but can also lead to losses. Nowadays, even elementary students can obtain debit cards, and many middle schoolers use credit cards. Some families even gift stocks during holidays. However, there are limitations to providing systematic and realistic financial education at home. Therefore, financial education should begin at a younger age, tailored to students' comprehension levels. High school financial education should not remain an elective but should be mandatory for all students. In reality, subjects that do not impact college admissions are often less favored by students. Reports indicate that the selection rate for economics courses is not high. However, finance significantly affects both individuals and businesses. Thus, financial courses should be offered on a Pass/Fail basis, regardless of their impact on college admissions, and should be included in graduation requirements. Schools with low enrollment numbers that struggle to offer electives could consider partnering with nearby universities or inviting financial experts to provide practical financial education. More advanced theoretical education can be addressed in college courses later. Financial education must encompass not only potential profits but also the risks of loss. Traditional economic education often focuses on the "positive realm" where everyone benefits. However, behavioral economics and behavioral finance emphasize concepts like prospect theory, loss aversion, and sensitivity. Financial education should not merely convey textbook content mechanically but should be grounded in real-world examples for practical understanding. Finance plays a crucial role in individuals' lives. Therefore, financial education should be continuous and realistic from an early age. There is an increasing need for financial education in schools that aligns with real-world scenarios. * This article has been translated by AI. 2026-05-18 05:04:10