Cement Industry Union Urges Suspension of Discussions on "Local Resource Facility Tax Legislation Unfairness"

[Asia Economy Reporter Kim Jong-hwa] Labor unions of major domestic cement companies have urged the suspension of the legislation on the "Regional Resource Facility Tax on Cement Production (commonly known as the Cement Tax)" currently under discussion in the National Assembly.

On the 7th, labor unions and union chairpersons from seven major domestic cement companies, including Sampyo Cement, Ssangyong Cement, Hanil Cement, Hanil Hyundai Cement, Asia Cement, Sungshin Cement, and Halla Cement, issued a statement titled "Statement on the Unfairness of the Regional Resource Facility Tax Legislation on Cement."

In the statement, the unions described the legislation of the regional resource facility tax as "a very harsh measure that undermines the cement industry's will to recover, which has been striving to overcome numerous management crises and normalize operations," and called for the suspension of the legislative process.

The unions also stated, "The cement industry has transparently implemented direct support such as signing win-win cooperation agreements with local communities, contributing to regional development funds, hiring local talent, scholarship projects, and donations for disaster relief, and we intend to further expand these efforts in the future to ensure that tangible benefits return to regional development and the improvement of local residents' quality of life."

They appealed, "If the regional resource facility tax legislation increases management difficulties, it could lead to reduced new hires and lower wage levels, which would impose a tremendous burden on our unions, who aim to improve the quality of life for each union member both at work and at home. We ask you to consider this carefully."

In particular, they emphasized, "Please recognize that the cement industry is not a business that causes external negative effects such as environmental pollution, but rather an optimized industry that can handle environmental pollution and recyclable resources in the safest and most perfect way," and earnestly requested, "Please halt the discussions on imposing the regional resource facility tax being promoted by the National Assembly and local governments."

Meanwhile, the amendment to the Local Tax Act, proposed by Lee Gae-ho of the Democratic Party of Korea, which imposes a regional resource facility tax of 1,000 won per ton of cement produced, was also introduced in the 20th National Assembly. However, it was automatically discarded amid opposition from the cement industry and the Ministry of Trade, Industry and Energy, as well as doubts about the tax administration capabilities and transparency of the relevant local governments.

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