Deputy Prime Minister and Ministry of Economy and Finance Minister nominee Koo Yun-cheol stated that he would "actively review" claims that the corporate tax rate reduced during the Yoon Suk-yeol administration should be reversed.
During the National Assembly Strategy and Finance Committee hearing on the 17th, Koo said in response to related inquiries, "I will consider things like ability-to-pay taxation and its effects."
Currently, the highest corporate tax rate in Korea is 24%. This figure was lowered by 1 percentage point through a tax law amendment in 2022 during the Yoon Suk-yeol administration.
Koo assessed that there were changes in the fiscal situation and economic trends following the tax cut, stating, "I believe the Yoon Suk-yeol administration expected that cutting taxes would lead corporations to invest, creating a virtuous cycle. However, a review of tax revenues shows that national tax revenues decreased from 396 trillion won in 2022 to 337 trillion in 2024, and corporate tax revenue dropped significantly from about 100 trillion won in 2022 to around 60 trillion last year, which is a 40% decline, while growth, consumption, and investment have also decreased."
He further stated, "Resources necessary for a true transformation of Korea must be secured from somewhere," adding, "I will comprehensively review the effects of tax cut policies."
Earlier, on the 15th, Koo had also mentioned in written answers for the confirmation hearing, "Compared to countries with similar economic sizes among OECD countries, I understand that the corporate tax rate, including local government tax, is somewhat low," and noted, "There is an aspect that the previous administration weakened the tax revenue base due to economic slowdown and the corporate tax rate reduction."