Ruling Party Accelerates Discussions on President Lee’s Proposed "Sugar Surcharge"

The ruling party is initiating discussions on the sugar surcharge, a topic raised by President Lee Jaemyung.

According to the Democratic Party on February 3, Assemblyman Jung Taeho and Assemblywoman Lee Sujin, who serve as the ruling party secretaries for the National Assembly’s Strategy and Finance Committee and the Health and Welfare Committee, are currently reviewing the proposal of related legislation. Assemblyman Jung plans to hold a “National Assembly Forum on the Sugar Overuse Surcharge” on February 12 to begin discussions on the issue. At the committee level, the focus is expected to be on establishing and managing the new surcharge.

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At present, rather than creating a new tax category through tax reform, it is more likely that the surcharge will be imposed as a quasi-tax, similar to tobacco. The use of the funds will be clearly defined, such as for the treatment of juvenile diabetes, and will be managed through the National Health Fund. A Democratic Party official stated, “This issue has been consistently raised, especially in the health and welfare sector,” adding, “There are many proposals to use the collected funds not for the national treasury, but to create a fund for essential and critical medical care.” Previously, on January 28, President Lee proposed, “Let’s curb sugar consumption and reinvest the proceeds in strengthening regional and public healthcare.” He further fueled the debate on February 1 by stating, “The more difficult the issue, the more we should discuss it.”

There is already a bill that has been introduced. Assemblywoman Kim Sunmin of the Innovation Party for the Homeland sponsored an amendment to the National Health Promotion Act on January 30, which would impose a surcharge on sugar-sweetened beverages. The core of the bill is to authorize the Minister of Health and Welfare to impose and collect a surcharge of 225 to 300 won per liter on beverages containing sugar above a certain threshold, based on a 100-milliliter standard. The collected funds would be used to create a fund for the prevention and research of obesity and chronic diseases, as well as for regional, essential, and public healthcare projects.

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