Received Even by New Employees at Large Corporations

High Earners Also Receive Payment for Second Half Year Employment

On the 5th, MBC reported that the Earned Income Tax Credit, which is provided to low-income individuals, is also being received by new employees with high annual salaries. Photo by MBC News Desk.

[Asia Economy Reporter Kim Bong-ju] It has been revealed that the 'Earned Income Tax Credit,' which is supposed to be paid to low-income earners, is also being paid to new employees of large corporations and public enterprises with high salaries.

On the 5th, MBC reported that the Earned Income Tax Credit, which is provided to low-income and impoverished individuals, is also being claimed by new employees with high annual salaries.

Previously, in 2018, the government significantly expanded the criteria for the Earned Income Tax Credit, which determines eligibility and payment amounts based on annual income and assets. The age requirement of 30 years or older was removed, and the annual income threshold was increased to 20 million won.

As a result, even new employees with high salaries who started working in the second half of the year and received only a few months' salary could have an annual income below 20 million won and thus qualify for the Earned Income Tax Credit.

Among those who disclosed receiving the Earned Income Tax Credit on the Blind app's bulletin board, where users verify their companies and share activities, there were many from public officials, public enterprises, and large corporations and financial institutions known for high salaries.

Those who reported receiving amounts ranging from 300,000 won to 1.5 million won said things like, "This free money is great," "You're a fool if you don't take this blind government money," and "I don't even know why I received it myself."

On the 5th, MBC reported that the Earned Income Tax Credit, which is provided to low-income individuals, is also being received by new employees with high annual salaries. Photo by MBC News Desk.

Although it is estimated that a considerable number of those who received the Earned Income Tax Credit work at large corporations or public enterprises, there is no way to determine the exact proportion.

The total amount of Earned Income Tax Credit paid this year is 4.3 trillion won. Since the system reform two years ago, about 900 billion won has been paid annually to single households under 30 years old.

Regarding this, the National Tax Service stated, "We only verify whether the income criteria are met or not and provide the credit accordingly. Since all personal information is strictly controlled, we cannot confirm which companies the recipients work for or how they receive the credit."

There are criticisms that due to loopholes in the current system, the Earned Income Tax Credit intended for low-income workers is being used contrary to its original purpose.

This content was produced with the assistance of AI translation services.