IslamicFinance.de

The front page pictures that appeared last Friday in newspapers across Korea of President Lee Myung-bak and his wife kneeling at the National Prayer Breakfast portray an image of contriteness and humility. It’s almost as if President Lee was asking for forgiveness from the Protestant church after he became the target of criticism for supporting legislation that would give tax breaks to Korean companies that issue Islamic sukuk bonds.
The pastor of Yoido Full Gospel Church, the largest Protestant congregation in the world, at first threatened to topple Lee over the issue, but he later backed away from that comment.

President Lee Myung-bak called for a greater role for the Christian community in addressing social conflicts, in an apparent appeal to some church leaders who have opposed the government’s plan to give tax benefits to holders of Islamic bonds, or “sukuk.”
The meeting drew keen attention amid controversy regarding collective action by some Christian groups to nullify such a plan aimed at attracting investment from oil-rich Muslim countries.

Protestants are trying to block the National Assembly from approving an Islamic bond bill. Giving in to their pressure, the governing Grand National Party (GNP) has decided to stop deliberations on the bill.
Last week, the Christian Church applied more pressure on the government and the legislature, heightening tension over the issue. Rev. Cho Yong-gi, emeritus pastor of the Yeouido Full Gospel Church, has threatened to stage a campaign to force President Lee Myung-bak out of power unless his administration gives up the legislation bid for Islamic bonds.

Pastor David Yonggi Cho has declared war against President Lee Myung-bak over the administration’s backing of a bill that will provide a tax exemption for the local issuers of Islamic sukuk bonds.
Sukuk bonds conform to an Islamic law that bans interest payments and instead offers bondholders dividends or leasing profits as compensation. The pending legislation would have offered tax concessions to Korean corporate issuers of sukuk bonds in order to tap funds from oil-rich Middle Eastern countries.