청 "Strengthening Tax Support for National Strategic Technologies... Helping Expand Supply Chains"

The 55th Cabinet Meeting, Agenda Processing... "Strengthening Disclosure Obligations for Overseas Affiliates"

[Asia Economy Reporter Ryu Jeong-min] Shin Hye-hyun, Deputy Spokesperson of the Blue House, stated on the 21st regarding the 'Partial Amendment to the Restriction of Special Taxation Act' that "This strengthened tax support measure for national strategic technologies is expected to greatly help South Korea secure core technologies and supply capabilities and expand leadership in the global supply chain."

Deputy Spokesperson Shin explained, "We are strengthening tax support for research and development and facility investment in ‘national strategic technologies’ such as semiconductors, batteries, and vaccines, and to support low-income households who work hard, we raised the income criteria for eligibility for the ‘Earned Income Tax Credit’ by 2 million won so that more citizens can benefit."

The partial amendment to the Restriction of Special Taxation Act also includes raising the tax credit rate from the existing 0.1%~0.2% to 0.15%~0.5% for payment of purchase funds through the ‘win-win payment system’ to ease the burden on small and medium-sized enterprises struggling due to COVID-19 and other factors.

[Image source=Yonhap News]

Meanwhile, President Moon Jae-in presided over the 55th Cabinet meeting held on the morning of the same day at the Blue House Yeomin 1 Building via video conference with the Government Seoul Office and Government Sejong Office Cabinet meeting rooms.

They deliberated and resolved 33 promulgation bills including the partial amendment to the Restriction of Special Taxation Act, 4 bills including the partial amendment to the Act on Support for Veterans, 31 presidential decree drafts including the full amendment to the Enforcement Decree of the Monopoly Regulation and Fair Trade Act, and 3 general agenda items including the 2021 general account general reserve expenditure plan.

Regarding the 'Full Amendment to the Enforcement Decree of the Monopoly Regulation and Fair Trade Act,' Deputy Spokesperson Shin stated, "As the Monopoly Regulation and Fair Trade Act, which strengthens disclosure obligations for overseas affiliates to enhance transparency in corporate group management structures, will be enforced from the 30th, the disclosure contents for overseas affiliates will be stipulated in the enforcement decree."

Deputy Spokesperson Shin added, "From now on, the company name, country of location, business details, shareholder status, and investment status of domestic and overseas affiliates of the relevant overseas affiliate will be disclosed."

Furthermore, Deputy Spokesperson Shin expressed, "The revised Fair Trade Act this time is the first full amendment in 30 years since the one in 1990 after its enactment in 1980, and it will institutionally support corporate management and corporate governance accountability and transparency, contributing to the sustainable growth of our economy."

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