Lee Jae-myung's government has decided to raise the corporate tax rate by 1 percentage point from 24% to 25% for the first time in three years, which has raised concerns among major economic groups that this will increase the burden on corporations. On the other hand, they expressed approval regarding the establishment of the artificial intelligence (AI) field as a national strategic technology in the Restriction of Special Taxation Act.
The Korea Chamber of Commerce and Industry on the 31st commented on the '2025 tax reform plan,' stating, "This tax reform plan is evaluated as containing the will to support the fostering of advanced industries and the revitalization of the capital market," and noted, "Introducing separate taxation of dividend income for high-dividend corporations and adding dividends as targets for the reinvestment and win-win cooperation promotion taxation are appropriate measures to promote dividend expansion and revitalize the capital market."
However, KORCHAM noted, "The plan to raise the corporate tax rate by 1 percentage point for each income bracket contrasts with major countries like the United States that are lowering their corporate taxes to enhance their domestic corporations' tax competitiveness and actively attract foreign companies," and expressed concern that this could only increase the burden on our corporations.
The Korea Enterprises Federation also stated, "While (the tax reform plan) is expected to enhance the dynamism of our economy facing a 0% low-growth crisis and help restore the livelihood economy," it added, "The increase in the corporate tax rate and the end of temporary investment tax credit will reduce the effectiveness of this support and dampen investment sentiment."
The Korea Economic Federation, in a statement from its head, Lee Sang-ho, said, "We regret that the tax reform plan includes measures that increase the burden on corporations, such as the corporate tax rate hike," adding, "In a situation facing multifaceted crises like slowing growth potential, deteriorating trade environment, and prolonged domestic recession, increasing the management burden on corporations could lead to a decline in global competitiveness."
The Korea International Trade Association also expressed concern, through its head, Jeong Hee-cheol, stating, "I am worried that the increase in the corporate tax maximum rate included in the tax reform plan may add to the burden of export corporations that are currently facing difficulties such as tariff risks," and noted, "Amid various legislative discussions that could cause burdens on corporations, this corporate tax increase could lead to a decrease in export motivation and an overall contraction of the investment environment."
The Deputy Minister continued, "Including the establishment of national strategic technology in the AI field and designating related commercialization facilities in the tax reform plan is very positive," and added, "In particular, the government's policy intention to expand investment in AI ecosystems, such as AI data centers, is evaluated as timely."