Yoon: "Opposition's Obstruction... Tax Support for Semiconductors and More Must Be Further Expanded"

Scheduled Approval of Tax Law Amendment at Temporary Cabinet Meeting on the Afternoon of the 30th
President Yoon "Regretful That Tax Support Measures Were Not Discussed"

[Asia Economy Reporter Baek Kyunghwan] President Yoon Seok-yeol stated on the 30th, "I hope that measures to further expand tax support for national strategic industries such as semiconductors will be actively considered."

President Yoon gave this directive regarding the tax law amendment bill scheduled to be approved at the extraordinary Cabinet meeting chaired by Prime Minister Han Duck-soo that afternoon, according to a written briefing by Lee Jae-myung, deputy spokesperson of the presidential office. Prime Minister Han is expected to hold the extraordinary Cabinet meeting at 2:30 p.m. that day and approve the tax law amendment bill passed by the National Assembly.

[Image source=Yonhap News]

On the same day, President Yoon did not hide his discomfort over the ruling and opposition parties' agreement on next year's budget. He said, "Due to the opposition party's obstruction, which holds the majority of seats, the reduction of the highest corporate tax rate aimed at enhancing companies' global competitiveness and expanding investment was not fully reflected," adding, "I regret that the tax support measures proposed by the Semiconductor Special Committee were not sufficiently discussed."

However, he delivered a message urging support for national strategic industries. President Yoon said, "National strategic technologies such as semiconductors are assets of national security and core technologies of our industry, so the Ministry of Economy and Finance should actively consider measures to further expand tax support for national strategic industries such as semiconductors in consultation with related ministries."

The government had earlier proposed a tax law amendment bill to lower the highest corporate tax rate from the current 25% to 22%, a 3 percentage point reduction. However, due to opposition party criticism of it being a 'tax cut for the wealthy,' a 1 percentage point reduction compromise proposed by National Assembly Speaker Kim Jin-pyo was adopted and applied to all four tax bracket stages, passing the plenary session of the National Assembly.

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