Bu-Ul-Gyeong Chambers of Commerce Propose Differential Corporate Tax Application for Non-Capital Region Companies

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Sang-hyun] The Gyeongsangnam-do Chamber of Commerce and Industry Council, together with the Busan Chamber of Commerce and Industry and the Ulsan Chamber of Commerce and Industry, submitted a petition to the government, including the Blue House, the Ministry of Strategy and Finance, and the Ministry of Trade, Industry and Energy, on the 3rd, requesting differential application of corporate tax for companies located outside the metropolitan area, and proposed it as a pledge for the 20th presidential election to each political party in the National Assembly.

In the petition, the Busan, Ulsan, and Gyeongnam Chambers of Commerce expressed concern that the economic and social gap between the metropolitan area and non-metropolitan areas is widening day by day due to the intensification of metropolitan area centralization, and especially that the concentration of young people in the metropolitan area triggered by job disparities will further accelerate the population concentration problem in the metropolitan area.

Accordingly, the Busan Chamber of Commerce argued that in order to keep the workforce flowing into the metropolitan area in the local regions and revitalize local industries, additional bold policies must be implemented to create quality jobs and attract investment to the provinces.

The Chamber requested that corporate tax, one of the biggest burdens in corporate management, be reduced for companies located outside the metropolitan area as a measure.

According to the Chamber's data, the corporate tax collected from the entire non-metropolitan area last year was about 15.6 trillion won, which is comparable to the government's national balanced development budget of about 16.6 trillion won.

They analyzed that if corporate tax is applied differentially, it would not only induce companies to relocate to non-metropolitan areas with an amount less than the annual national balanced development budget input, but also expect more effective national land balanced development outcomes such as enhancing the competitiveness of non-metropolitan companies.

Additionally, since companies that have operated for a long time in non-metropolitan areas greatly contribute to the local economy through job creation, they requested additional tax benefits so that these long-established local companies can continue their business in the region and contribute further to regional development.

Ku Ja-cheon, chairman of the Gyeongnam Chamber of Commerce, said, "National balanced development is a nationwide common goal that must be achieved for the future," and added, "To redirect companies and jobs concentrated in the metropolitan area back to the regions, more bold incentives must continuously be discovered."

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