This study aims to examine the negative impact of the COVID-19 crisis on social and economic stability and inclusiveness, and to suggest the necessary policy direction to deal with it. To this end, the historical experiences of pandemic diseases were reviewed, and the relationship between the effects of the COVID-19 crisis on the labor market by gender and the effect of family-friendly policies were analyzed. In addition, the causes of the instability in the housing market and the direction of policy improvement were discussed. Finaly, the current situation of taxation policies on financial assets were reviewed and the theoretical analysis and internatinal comparison were carried out.
First, according to studies on the epidemic of infectious diseases in the past, pandemic diseases caused greater socio-economic costs by impeding the formation of human capital beyond direct costs such as casualties. Therefore, it was confirmed that an active response is required to minimize the damage caused by such diseases, and the implementation of an intensive quarantine policy was effective in alleviating the long-term economic stagnation. However, as the recent COVID-19 pandemic has been continuing for a long time, it is becoming difficult to sustain a high-intensity quarantine policy. The current policy is difficult to maintain because the individual’s marginal cost is likely to increase rapidly due to the economic damage accumulated over a long period of time. Therefore, compensation for losses to the self-employed and small business owners, where the cost of quarantine is concentrated, is an urgent issue. In particular, the main tasks are to prepare a rational basis for assessing the amount of damage and to ensure prompt payment.
Second, by examining the gap in gender labor market performance by country due to the COVID-19 health crisis and analyzing the relationship with family-friendly policies, it was attempted to suggest what constitutes an appropriate family-friendly policy in the post-COVID-19 era. As a result of empirical analysis, it was found that the effect was different depending on the type of family-friendly policy. It was estimated that the existing cash grants to families had a positive effect on the employment of men and women during the health crisis. However, it was found that service support for the family and the period of maternity and paternity leave had little effect on the employment of men and women during the health crisis. The result that the cash support system acts as a buffer against economic shocks during a catastrophic crisis implies that it is important to support households so that they can respond flexibly. On the other hand, if social distancing is enforced, the use of childcare services or the use of the parental leave system may be limited. When a catastrophic crisis occurs in the future, it is necessary to establish a policy response strategy in consideration of the function of such family-friendly policies.
Third, it was attempted to suggest a desirable policy direction by analyzing the instabilities in the housing market in Korea after the outbreak of the COVID-19 crisis and comparing the real estate policy system in Korea with major foreign countries. First of all, in the short term, the housing market of major countries is changing significantly due to the anxiety caused by Corona 19. However, from the perspective of the housing system, it is not considered as a shock enough to fundamentally change the housing system. From a longer-term perspective, Korea’s housing system has a transitional character in which productionism, liberalism, and even conservatism and social democracy are mixed. In the mid- to long-term, the government-led mass production method has considerabel drawbacks, so it is inevitable to change to a supply method that utilizes the creativity of the private sector to meet various private housing demands. Considering the direction of housing policy in relation to housing finance, housing welfare, rental market, and taxation in the housing system in relation to these housing systems, the following tasks are derived. ① A system that supports loans, taxes, and rentals centered on home buyers for the first time in their lives is needed. ② It is necessary to prepare a plan to build a new public housing support system, including housing benefits, by raising the public rental inventory ③ It is necessary to transform the individual-oriented rental market into social lessors (social enterprises, non-profit organizations such as cooperatives, or publicly supported rental housing), rental companies, and lessors who can contribute to society as professional and capable as REITs. ④ Regarding taxation, it is desirable to minimize the tax burden on one house per household and institutionalize the property tax as a financial resource that can be used for procurement of local financial resources and regional development rather than from the viewpoint of housing price stabilization.
Fourth, in relation to the issue of income and property inequality, which became more prominent during the Corona crisis, from the perspective that the overhaul of the financial asset-related taxation system can act in the direction of reducing the disparity in asset allocation by income class. Theoretical considerations and comparisons with major foreign countries lead to the following conclusions. First, it can be concluded that it is necessary to lower the deduction limit set at 50 million won per year. Second, it is necessary to expand the scope of taxable income to increase the effect of total profit and loss. Third, it does not seem necessary to maintain the existing securities transaction tax with the imminent imposition of taxation on the gains on transfer of listed stocks by small investors. Fourth, it is necessary to give preference to long-term holding by imposing a lower tax rate on transfer gains obtained by trading stocks held in excess of this for one year.