Koo Yun-cheol, Deputy Prime Minister and Minister of Strategy and Finance, said he would consider income tax cuts for regional workers.
Deputy Prime Minister Koo appeared on MBC Radio's "Kim Jong-bae's Focus" on the 7th and said, "If you work in the regions, taking into account that various conditions are poor, we will offer a slightly larger deduction than Seoul's income tax."
Koo said, "We are reviewing methods such as income deductions or tax credit, taking into account what workers in the regions want." He also hinted there may be support for education expenses for the children of regional workers.
On support for the artificial intelligence (AI) and semiconductor industries, he mentioned expanding tax support for research and development (R&D) and investment, and carryforward deductions. Deputy Prime Minister Koo said, "Even if there is profit and taxes are paid now, there may be times later when taxes cannot be paid. We are considering allowing carryforward deductions then," adding, "The government plans to fully support what corporations need to invest, including infrastructure, talent, regulation, finance, and taxation."
On excess tax revenue from the semiconductor boom, he said, "Looking at FnGuide's operating profit outlook for this year, just Samsung Electronics and SK hynix are expected to have 600 trillion won in operating profit, and even at an average of 20%, that becomes an enormous amount of money (120 trillion won)," adding, "The two corporations would be in a situation where they pay all the corporate taxes from the past."
He added, "I would like to call (the excess revenue) additional tax revenue," and said, "We are internally reviewing using it for future work for an irreplaceable Korea through a newly created 'Future Response Fund.' If possible, the related bill should be handled before the regular National Assembly session (September), which shows the speed that is needed."
On regional industry development strategies, Deputy Prime Minister Koo said, "We will specialize the Honam region as the second semiconductor production base, the Chungcheong region as a packaging hub, and the Yeongnam region as a center for AI-related materials, parts, and equipment," adding, "We see the entire Korean Peninsula as one AI Semiconductor ecosystem, and we plan to make good and even use of playing fields nationwide."
On the direction of real estate tax reform, Deputy Prime Minister Koo said, "We are looking at property taxes and transaction taxes together from the perspective that the two should be in balance," adding, "Based on the principle that a house is for 'living,' not 'buying,' we will ensure the housing market is established with a focus on actual occupants." The government plans to announce tax reform measures at the end of this month.