South Korean ministerial nominee does not consider cutting corporate tax
In South Korea, Lee Hyun-il, the nominee for deputy prime minister and minister of economy and finance, said he is not considering a cut to the corporate tax. He gave this answer to a question from a lawmaker of the ruling party ahead of a National Assembly hearing on his appointment scheduled for Tuesday.
Current tax rate
As The Korea Herald reports, Lee noted that the restored corporate tax rate came into effect this year. In 2022, the previous administration of President Yoon Suk Yeol reduced the top rate from 25% to 24%. The subsequent administration of Lee Jae Myung restored the rate to 25% from the beginning of this year.
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According to the nominee, the rate was raised by one percentage point to normalize the tax burden on companies. He explained that the resources obtained through this change are planned to be used to support business competitiveness and create a cycle between economic growth and tax revenues.
Tax rates for regions
Lee also commented on proposals to further differentiate corporate and other tax rates in favor of companies operating outside the capital region. In his view, such a step should be approached cautiously, taking into account tax equity and the possible impact on the overall state of public finances.
