On March 26, it was confirmed that the People Power Party (PPP) had considered graded tax deductions for gifted property as a way to resolve the nation’s low birth rate. The policies reviewed by the ruling PPP included tax exemptions for couples with multiple children when they received gifts of property from their parents. This triggered criticism that the PPP’s perspective on the problem of the low birth rate leaned in favor of the rich.

According to the coverage by the Kyunghyang Shinmun Sunday, in February and March, the People Power Party considered expanding tax exemptions by providing differential exemptions for gifted property according to the number of children one had. The new measure would free citizens from taxes on up to a certain amount of gifted property. According to the current inheritance tax and gift tax, an adult can receive up to 50 million won and a minor can receive up to 20 million won over the course of a decade from their parents without paying the gift tax. Whether or not one has a child or the number of children one has is irrelevant when calculating tax exemptions.

What is central in the policy reviewed by the PPP is that the number of children one has was newly included as a factor determining the scope of gift tax exemptions. In other words, when one is gifted property by her parents, the amount of property eligible for tax exemptions would vary according to the number of children she has. The PPP explained that they reviewed the policy to help grandparents share the burden of child-raising, such as childcare and education expenses. The party reviewed specific measures, such as tax exemptions for up to 100 million won of gifted property for people with one child, 200 million won for people with two children and up to 400 million won for parents with three children.

The PPP also reviewed other measures to overcome the low birth rate, such as increasing the child benefit for families raising children, which is currently 100,000 won a month for families with children under the age of eight, to one million won a month for families with children under the age of eighteen. They also discussed exempting twenty-something fathers with three or more children from mandatory military service. Another idea they examined was similar to the Swedish parental leave, extending the mandatory parental leave for men to the same length as women, ninety days. In addition, they considered expanding the current policy of acknowledging an additional period of up to fifty months of the pension subscription period for people with two or more children to people with one or more children. The PPP policy committee delivered the measures they reviewed to the Office of the President.

They also reviewed giving additional points to civil servants with multiple children when they undergo a review for a promotion as well as allowing transfers for childcare even when they have yet to fulfill the required service period. The ruling party also considered giving military personnel who have given birth additional points in assessments for promotions and long-term service recognition.

Experts point out that a considerable number of measures that the People Power Party reviewed were for the rich. Expanded tax exemptions for gifted property worked in favor of people with property to inherit. Previously, the PPP stirred controversy after news got out that they considered freeing fathers in their twenties with three or more children from mandatory military service, because the measure was seen as more accessible to “rich parents” who could afford to have children.

However, it is still uncertain as to whether these measures will actually be implemented as a policy. After the military service exemption drew public criticism, PPP leader Kim Gi-hyeon tried to put the flames out by saying, “It was just an idea and was not official reviewed by the party.”

Some people claim that it was a mix-up that occurred in the process of establishing a new party leadership. A key PPP official said, “It (the review of the low birth rate policies) had nothing to do with the Kim Gi-hyeon system. We haven’t looked into it yet,” and explained that the media coverage made it look like Kim canceled everything after things backfired. He argued that this was not the case.

When the reporter asked about the details of the party’s plan to overcome the low birth rate, Park Dae-chul, who was newly elected chair of the party’s policy committee on March 23, said, “Don’t rush into something recklessly before following the appropriate order of things.” He implied the need for time to take his place as chief of policy and to understand and discuss the specific policies.