Son Kyung-sik: "Business community's demand for corporate tax cuts aims to boost economic vitality"

[Asia Economy Reporter Suyeon Woo] Sohn Kyung-shik, Chairman of the Korea Employers Federation, emphasized that the business community's demand for a corporate tax cut is intended to revitalize the Korean economy, which has declined due to the novel coronavirus infection (COVID-19).

On the 26th, Chairman Sohn explained this to reporters after a meeting between the Prime Minister and the heads of five economic organizations held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. He said, "The corporate tax cut is not about companies receiving immediate benefits under the current economic situation," adding, "It is intended to actively promote contracted corporate activities and investments during the future economic recovery process to help economic vitality and employment."

He also added, "Since significant time is required for legislative procedures such as tax law amendments for the corporate tax cut to actually take place, we should start preparing from now." This is interpreted as an explanation in response to criticism from some quarters, including Gyeonggi Province Governor Lee Jae-myung, regarding the business community's request for a corporate tax cut.

Meanwhile, at the meeting between Prime Minister Chung Sye-kyun and the heads of five economic organizations on the same day, Chairman Sohn mentioned flexible working hours and liquidity support for companies in preparation for the upcoming economic recovery period. He emphasized, "Since additional demands for working hours are inevitable during the economic crisis recovery process, flexible working hours management, such as active approval of special extended work, is necessary."

He continued, "We need to relax the conditions for leave and furlough eligible for employment retention subsidies and strengthen social safety net systems," adding, "Especially in difficult times, we expect the government to play an active role so that labor and management can share hardships, save companies, and enhance competitiveness."

Son Kyung-sik, Chairman of the Korea Employers Federation

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