Choi Sang-mok "Corporate Tax is an International Competitive Tax... Global Standards Must Be Considered"

"Rather than Imposing Windfall Tax on Banks, Social Contribution is Preferable"

Choi Sang-mok, the nominee for Deputy Prime Minister for Economy and Minister of Strategy and Finance, expressed on the 17th the necessity of an internationally competitive corporate tax system in response to questions about the need to lower corporate tax rates. This indicated his willingness to further reform, including additional reductions in corporate tax rates.

Choi stated, "Corporate tax is a tax item that competes internationally, so global standards must be taken into account." The government submitted a tax law amendment last year to the National Assembly to lower the top corporate tax rate from the current 25% to 22%. However, the National Assembly plenary session approved a plan to reduce the tax rate by 1 percentage point for each taxable income bracket.

Choi emphasized, "It is necessary to make judgments on lowering corporate tax rates by considering corporate competitiveness in the global market and international corporate tax levels." He added, "We will continue to refine the tax system to prevent tax evasion and actively support legitimate corporate activities," and "An internationally competitive corporate tax system is necessary for a dynamic economy centered on the private sector."

Choe Sang-mok, the nominee for Deputy Prime Minister and Minister of Economy and Finance, is arriving at the hearing preparation office in Jung-gu, Seoul, on the morning of the 11th.
[Photo by Yonhap News]

Regarding the need to lower inheritance tax raised by some quarters, he expressed a cautious opinion, saying, "Inheritance tax reform is an issue that must be promoted through close communication with all sectors of society and the formation of sufficient national consensus."

He also responded that a cautious approach is necessary from the perspective of tax fairness regarding the imposition of windfall taxes on the banking sector.

Choi emphasized, "Windfall tax is an additional tax that discriminates by distinguishing only special industries," and added, "Rather than windfall tax, it is desirable for banks to voluntarily ease financial burdens and strengthen social contributions for small business owners and others struggling due to high interest rates."

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