Bang Gi-seon "Boldly Reform Taxation System for Companies Not Meeting Global Standards"

The 1st Mid- to Long-Term Tax Policy Deliberation Committee

[Asia Economy Sejong=Reporter Kim Hyewon] Bang Giseon, the 1st Vice Minister of the Ministry of Economy and Finance, said on the 3rd, "The new government should promote the reform of the corporate tax system along with strengthening reshoring support and revitalizing intergenerational transfer of technology and capital."

Vice Minister Bang chaired the '1st Mid- to Long-term Tax Policy Deliberation Committee' at the Korea Chamber of Commerce and Industry in the afternoon and stated, "Through the new government's tax policy, we must boldly reform the corporate taxation system that does not meet global standards and hinders corporate creativity and innovation activities so that companies can create quality jobs and actively invest."

The new government's first mid- to long-term tax policy plan will focus on three key areas: ▲ enhancing private sector dynamism ▲ stabilizing the livelihood economy ▲ strengthening tax infrastructure construction.

Vice Minister Bang emphasized, "Along with reforming the corporate tax system, which has higher rates and a more complex structure compared to OECD advanced countries, we must actively promote strengthening reshoring support so that companies and capital that have gone overseas can return domestically, as well as revitalizing the intergenerational transfer of technology, know-how, and capital."

He continued, "The dynamic innovative growth of our economy is sustainable only when the livelihood economy is stable," adding, "In addition to the 10 urgent livelihood stabilization projects, we plan to continuously monitor factors increasing the living expenses burden on ordinary people, such as rising prices, interest rate hikes, and instability in the jeonse market, and to present necessary measures."

He also said, "A virtuous cycle where private-led dynamic growth leads to increased tax revenue can only function if a well-designed tax infrastructure is in place," and added, "Considering the increased demand for welfare spending due to low birthrates and aging population and the increased fiscal demand for future responses such as the transition to a low-carbon economy, building infrastructure to expand a stable tax base is a very important task." He further stated, "We must continuously strengthen institutional efforts for scientific welfare spending and tax base cultivation in the mid- to long-term, such as establishing a real-time income tracking system, enhancing the effectiveness of electronic tax invoice and cash receipt systems, and introducing intelligent offshore tax evasion prevention systems."

The Ministry of Economy and Finance plans to hold more than two additional deliberation meetings and finalize this year's 'Mid- to Long-term Tax Policy Operation Plan,' which will be attached to the 'National Fiscal Operation Plan' and submitted to the National Assembly. Professor Lee Jeon-oh of Sungkyunkwan University serves as co-chairman.

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