The Democratic Party of Korea began full-fledged discussions on imposing a levy on the use of sugar in processed foods, dubbed the "excess sugar use levy (sugar levy)." The idea is that it is needed to improve public health because the public's sugar intake exceeds the World Health Organization (WHO) recommendation. However, because the sugar levy could be perceived as effectively raising taxes, some said it will likely face tax resistance and that policymakers should closely review the burden on low-income groups and where the levy proceeds will be used.
The office of Democratic Party lawmaker Jeong Tae-ho, a member of the National Assembly's Strategy and Finance Committee, held a "sugar overuse levy forum" at the National Assembly Library on the morning of the 12th. It is the second time, following September last year, that Jeong has held a forum on the sugar levy. Senior party leader Mun Jeong-bok and lawmaker Kim Young-ho, chair of the National Assembly Education Committee, attended the forum.
The sugar levy is a system that imposes a charge on sweetened beverages and other products that contain excessive sugar, and it is categorized as a "health tax" in that it levies charges on foods harmful to health. The aim is to reinvest the charge in the public medical sector or raise the prices of harmful foods to improve public health.
Jeong Tae-ho said, "According to the WHO, 1 in 5 adults in Korea and 1 in 3 adolescents consume sugar above the recommended level, and recently there is even talk of a 'republic of sugar,'" adding, "In this situation, we concluded that if we do not discuss the sugar levy, the state would be abdicating its responsibility."
Discussion of the sugar levy began with a post by President Lee Jae-myung on X. On the 28th, Lee wrote, "What do you think about curbing sugar use through a sugar levy and reinvesting the proceeds to strengthen regional and public health care?" When criticism followed that the sugar levy was an attempt to raise taxes, Lee said, "I decline the far-fetched manipulations and distortions that try to trap this in a tax-hike frame."
Still, if the sugar levy becomes a reality, critics maintain that corporations' tax burdens will rise, ultimately leading to higher prices that will hit low-income groups. How to allocate the funds raised by the sugar levy is also one of the main points of contention. In particular, the Education Committee is showing strong interest in directing the sugar levy to youth programs.
Senior party leader Mun Jeong-bok said, "If you call it a sugar tax, there is resistance to taxes and a likelihood it will not pass, so it seems it was reshaped into the form of a levy," adding, "People say it would be good to use the funds from the levy to improve public health, but it is also true that the Education Committee is preparing to convert part of it into an education tax."
Lawmaker Kim Young-ho also said, "It would be good to use the funds secured through the sugar levy for the welfare of future generations," adding, "If the budget is used to improve the quality of school meals, strengthen reading and sports activities, and support adolescent mental health, we expect it will gain public sympathy and support."