Until the Last Day, the 'Parallel Lines' National Assembly... Six Economic Organizations Call for "Corporate Tax Reduction"

Institutional Momentum Creation is the Responsibility of the Government and the National Assembly

[Image source=Yonhap News]

[Asia Economy Reporter Choi Seoyoon] On the last day of the 2022 regular National Assembly session, the 9th, the corporate tax reduction bill failed to pass again, prompting the business community to appeal once more for the bill's approval.

On the 11th, six major economic organizations, including the Korea Chamber of Commerce and Industry, issued a joint statement urging the prompt passage of the Corporate Tax Act amendment during the regular National Assembly session, uniting their voices once again. The Korea Chamber of Commerce and Industry, Federation of Korean Industries, Korea International Trade Association, Korea Federation of Small and Medium Business, Korea Employers Federation, and Korea Federation of Medium-sized Enterprises participated in this joint statement. This marks the third time since last month that the business community has spoken with one voice regarding the amendment of the Corporate Tax Act.

The six economic organizations pointed out that with South Korea's economic growth rate expected to fall to the 1% range next year and concerns about low growth continuing even the year after, it is an important responsibility of the government and the National Assembly to establish institutional momentum to restore economic vitality. They expressed regret over the current reality, where bound by past paradigms, no step forward is taken to improve the system.

Furthermore, they added that global companies, empowered by the government's unprecedented support, are aggressively investing, and it should be recognized that through this, they are proactively responding to secure leadership in a new economic order where the economy and security are intertwined, not only for the revival of their own economies but also for strategic dominance.

The statement said, "Just as one cannot use a sword meant for idle times during wartime, maintaining peacetime systems in fierce economic warfare cannot be a proper policy," and argued, "It is undesirable to expect companies to compete on the global stage without improving the current corporate tax law, which is disadvantageous compared to competing countries."

The business community emphasized that the reason South Korea's resource-scarce economy could rise to the ranks of advanced countries was that during crises, the government, companies, and citizens united as one to turn challenges into opportunities and move forward. They requested the National Assembly to promptly pass the Corporate Tax Act amendment during the extraordinary session so that Korean companies, currently facing economic crisis and major transformation, can overcome difficulties and secure investment capacity.

The economic organizations stated, "If the tax reform, including the corporate tax reduction, passes the National Assembly, it will lead to increased investment and job creation, revitalizing the contracted domestic economy and through bold innovation activities, we will do our utmost to elevate South Korea's economic status."

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