Corporate Tax Cuts and Investment Tax Credits... Innovation Sword Drawn

Dangjeongdae Consults on New Economic Policy Directions

Deputy Prime Minister for Economy Choo Kyung-ho and Kwon Seong-dong, floor leader of the People Power Party, are attending the 3rd New Government Economic Policy Direction Party-Government Council held at the National Assembly on the 15th, talking before the meeting begins. Photo by Yoon Dong-joo doso7@

On the 15th, the ruling party and the Presidential Office held a meeting at the National Assembly under the theme of ‘New Government Economic Policy Direction’ and decided to boldly pursue regulatory reforms such as corporate tax cuts and investment tax credits. The focus was on reducing the corporate tax burden and restoring investment sentiment to promote corporate-led growth.

Choo Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance, stated in his opening remarks, "The government intends to boldly shift the economic management stance to overcome the current crisis and low growth," adding, "We will shift the core of economic management from the government to the private corporate market."

Deputy Prime Minister Choo explained the background of this policy shift, saying, "Recently, our economy is facing a very severe situation of a complex crisis," and "Along with the domestic spread of overseas inflation, fundamental problems of our economy such as the decline in private sector vitality caused by government-led fiscal management over the past few years, various regulations that hinder corporate vitality, and delays in structural improvements are also playing a significant role."

Lee Chang-yang, Minister of Trade, Industry and Energy, said, "The new government’s economic policy direction reflects many opinions from the industrial sector, including corporate tax cuts and investment tax credits, so we expect private investment to be greatly activated in the future," adding, "Considering the rising interest rates, strong investment tax credits are also necessary to offset this and to respond effectively in overseas markets."

The ruling party emphasized that it will also seek smooth consensus with the opposition party to realize economic policies. Kwon Seong-dong, Floor Leader of the People Power Party, said, "We will consider conducting regulatory impact analyses independently within the party when legislators propose bills," and "Excessive regulatory bills that hinder the livelihood economy will be coordinated through negotiations between the ruling and opposition parties."

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