Choo Kyung-ho "Corporate Pardons Will Help Economic Revitalization"

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho expressed the view on the 1st that the pardon of businesspeople could be beneficial to the economy.

On the same day, during a briefing to the National Assembly's Planning and Finance Committee, in response to a question from Lee Soo-jin, a member of the Democratic Party of Korea, asking, "Do you think the pardon of business conglomerate heads has a positive impact on corporate investment and economic revitalization?" Choo replied, "Regardless of political interpretations, I clearly think it would be helpful." He added, "After a certain point in time, from the perspective of national unity and economic vitality recovery, it is also a method to actively consider the pardon of businesspeople with the intention that all citizens come together."

He said, "However, a pardon is the president's inherent authority, and it is not appropriate for me to argue or speak first about the criteria." Additionally, he added, "There must be a premise that our citizens empathize (with the pardon of businesspeople)." Earlier, Prime Minister Han Duck-soo stated during a National Assembly interpellation that he would recommend the pardon of businesspeople such as Samsung Electronics Vice Chairman Lee Jae-yong and Lotte Group Chairman Shin Dong-bin to the president.

Deputy Prime Minister Choo also commented on the Investment Win-Win Cooperation Promotion Tax System (IWWC Tax), which is set to expire this year, saying, "Personally, I think this system is no longer effective," and "It is appropriate for it to expire this year." The IWWC Tax is a system where companies are additionally taxed 20% of the shortfall amount (non-recirculated income) as corporate tax if they do not use a certain portion of their income for investment, wage increases, or win-win cooperation. The predecessor of this system, the Corporate Income Recirculation Tax, was introduced in 2015 during the Park Geun-hye administration.

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