Opposition: "Corporate Tax Cut Raises Concerns of Burden Shift to Retail Investors and Ordinary Citizens"

Opposition: "Only Large Corporations and Financial Holdings Benefit"
'Tax Cuts for the Rich = Tax Hikes for the Common People' Frame
Corporate Tax, Tax Law Amendment Bill
Sharp Clash Expected in the Second Half of the National Assembly

Park Hong-geun, floor leader of the Democratic Party of Korea, is attending the policy coordination meeting held at the National Assembly on the 21st and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Koo Chae-eun] Oh Young-hwan, the floor spokesperson of the Democratic Party, stated, "There are concerns that parts such as lowering the top corporate tax rate might ultimately shift the tax burden onto small investors, ordinary citizens, and the public."

After the policy coordination meeting on the 21st, Oh said in a back briefing, "There were concerns about tax cuts for the wealthy and raising the taxation threshold for high-net-worth individuals, which effectively grants tax exemptions only to ultra-high-net-worth individuals."

He specifically mentioned, "The government is scheduled to announce tax law amendments, and if these parts are included, we plan to hold a press conference chaired by the Policy Committee Chair." Oh also stated, "Our party intends to promptly begin urgent discussions, including legislation related to raising fuel taxes and expanding tax exemptions for workplace meal allowances."

On the 4th, the partial amendment to the Corporate Tax Act was passed in the National Assembly plenary session with 185 votes in favor, 1 against, and 1 abstention out of 188 members present. Photo by Yoon Dong-ju doso7@

Park Hong-geun, floor leader of the Democratic Party of Korea, is delivering a negotiation group representative speech at the plenary session held at the National Assembly on the 20th. Photo by Yoon Dong-joo doso7@

The Democratic Party also strongly criticized corporate tax cuts during the negotiation group leader speech by floor leader Park Hong-geun the previous day. Park said, "The Yoon Seok-yeol administration's first measure is at the level of rehashing the Lee Myung-bak administration's policy, which was criticized as a 'tax cut for the rich,'" adding, "We will definitely prevent the reduction of national finances caused by corporate tax cuts that concentrate benefits on a few conglomerate large corporations."

The government proposed lowering the top corporate tax rate from the current 25% to 22% in the 'New Government Economic Policy Direction' announced on the 16th of last month. However, the Democratic Party has clearly opposed this.

Kim Sung-hwan, the Policy Committee Chair of the Democratic Party, also pointed out at a press conference last month that the tax cut plan promoted by the People Power Party and the government in 2022 is a 'tax cut for large corporations and conglomerate wealthy.' He emphasized, "South Korea's large corporations have world-class competitiveness," and "Considering the effective tax rate is about 17%, it is by no means a high level for corporations with a tax base exceeding 300 billion won to bear a 25% corporate tax."

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