Yoon: "All Ministries Must Unite Efforts for Tax, Financial, R&D Support and Market Expansion"

President Yoon Chairs First Cabinet Meeting of the New Year
"All Ministries Must Recognize Themselves as Export and Industry Ministries"
Urges Strong Push for Three Major Reforms in Labor, Education, and Pensions
Ministry of Economy and Finance Reports on Strengthening Tax Support Measures for Semiconductors and More

[Asia Economy Reporter Ki-min Lee] President Yoon Suk-yeol emphasized on the 3rd, "All our ministries must pool their capabilities for tax and financial support, research and development (R&D) assistance, and market development."

At the first Cabinet meeting of the year held at 10 a.m. at the Yongsan Presidential Office, President Yoon said, "As I have emphasized several times, we must overcome this complex crisis through exports and support the growth of advanced technologies and industries so that we can compete in the global market."

President Yoon first stated, "With the ongoing complex crisis and uncertainties in the global economy, the conditions surrounding us are not easy," and urged, "The government must respond thoroughly to the severe economic situation and do its utmost to achieve a new leap forward for our economy."

In particular, President Yoon repeatedly requested that all ministries recognize themselves as export and industrial ministries to achieve economic revitalization.

He also called for the strong promotion of the three major reforms in labor, education, and pensions. President Yoon emphasized, "As I mentioned at the last Cabinet meeting, we must speedily advance the strengthening of transparency in labor union accounting, normalization of the health insurance system, and comprehensive reorganization of the national subsidy management system."

President Yoon further asked for concrete implementation plans for government tasks and frequent reports on the progress, stressing, "The year 2023 must be a year in which our government demonstrates the promises made to the people through action."

He continued, "I ask you to carefully manage the progress so that it can be reported in detail to the public," and instructed, "Also, please proceed with speed so that the people can feel the effects."

[Image source=Yonhap News]

He noted that the Danuri spacecraft, which safely settled into lunar orbit, has sent its first news, highlighting the importance of advanced science and technology. President Yoon reiterated, "While urgent livelihood issues must be addressed, nurturing advanced science and technology and future growth industries is an important task of our government."

President Yoon also said, "The Korea Aerospace Agency, which will play a pivotal role in making the Republic of Korea a space economic powerhouse this year, is scheduled to be launched soon," and requested cooperation from all ministries, stating, "The Aerospace Agency will be organized as a research and development organization responsible for our future, centered on experts and projects."

Meanwhile, the Ministry of Economy and Finance reported at this Cabinet meeting a 'Plan to Strengthen Tax Support for Semiconductors and Other National Strategic Technologies' that significantly expands the tax credit rate for facility investments in national strategic technologies. The ministry’s plan includes raising the tax credit rate for facility investments in national strategic technologies from 8% to 15% for large and medium-sized enterprises, and increasing the tax credit rate for small and medium-sized enterprises from the current 16% to 25%.

This comes just four days after President Yoon instructed the Ministry of Economy and Finance to further expand tax support for national strategic industries such as semiconductors.

Earlier, at the end of last year, the National Assembly passed a tax law amendment raising the tax credit rate for facility investments by large corporations in national strategic industries such as semiconductors, electric vehicle batteries, and vaccines from 6% to 8%.

In response, before the Cabinet meeting held on December 30 last year, President Yoon said, "Due to obstruction by opposition parties with a majority of seats, the reduction of the highest corporate tax rate to enhance corporate global competitiveness and expand investment was not fully reflected," and instructed the preparation of plans to expand tax support.

President Yoon Suk-yeol is viewing a photo of the Moon and Earth taken by the Danuri spacecraft with Minister Lee Jong-ho of the Ministry of Science and ICT before the Cabinet meeting held at the Yongsan Presidential Office Building in Seoul on the 3rd.
[Image source=Yonhap News]

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