South Korean Finance Minister nominee Lee Hyoung-il said Sunday he is not considering a corporate tax cut, citing the restoration of the corporate tax rate that took effect this year. The nominee made the remarks ahead of his confirmation hearing at the National Assembly.
The nominee's stance on corporate taxes signals the government's current fiscal priorities and its approach to supporting corporate competitiveness and economic growth.
SEOUL, Sept. 13 (Yonhap) -- South Korean Finance Minister nominee Lee Hyoung-il stated on Sunday that he is not considering a corporate tax cut, pointing to the restoration of the corporate tax rate that became effective this year. Lee made these remarks in response to a question from a ruling party lawmaker regarding a potential corporate tax cut, ahead of his confirmation hearing at the National Assembly scheduled for Tuesday.
"Discussions on a corporate tax cut are not under consideration," Lee said, emphasizing that the corporate tax rate was restored this year. He noted that the previous Yoon Suk Yeol administration had reduced the top corporate tax rate from 25 percent to 24 percent in 2022, but the subsequent Lee Jae Myung administration reinstated the rate starting this year.
Lee further explained that the government restored the corporate tax rate by 1 percentage point to normalize the corporate tax burden. The aim is to foster a virtuous cycle between growth and tax revenue by utilizing the resources generated from tax normalization to support corporate competitiveness.
In response to another lawmaker's inquiry about his stance on calls for further tax rate differentiation to favor companies operating outside the capital area, Lee suggested that a more cautious approach is necessary. This caution is due to considerations of tax equality and the potential impact on the overall fiscal condition.