This file photo shows lawmakers attending a plenary meeting of the parliamentary strategy and finance committee at the National Assembly on March 22, 2023, where it passed the Act on Restriction of Special Taxation, nicknamed the K-Chips Act, meant to support the semiconductor industry by giving bigger tax incentives to chipmakers. (Yonhap)
SEOUL, March 28 (Korea Bizwire) — South Korea’s tax exemptions and incentives for this year are expected to hit an all-time high of 69.3 trillion won (US$53.48 billion), as the country seeks to better support vulnerable people and spur economic growth, the finance ministry said Tuesday.
The value of the tax cuts and credit, approved by the Cabinet on the day, marked a 9.1 percent rise from last year’s 63.5 trillion won, according to the Ministry of Economy and Finance.
The percentage of tax exemptions out of the total tax revenue is likely to reach 13.9 percent this year, nearly unchanged from a year earlier, it added.
In detail, some 43.3 trillion won will be tax exemptions for individuals, and 68.8 percent of the total will be for mid- to low-income earners.
Of the remaining 25.4 trillion won for private companies, 66.2 percent will be for small and midsized firms, and 3.8 percent for second-tier medium-sized firms.
The proportion for large conglomerates is expected to come to 16.7 percent this year, up from 10.9 percent in 2021 and 15.5 percent in 2022, according to the ministry.
The Yoon Suk Yeol government seeks to expand support for private firms’ technology development and investment to boost sagging exports and ensure growth momentum, and make efforts to provide tax subsidies to those in need while reducing unnecessary tax incentives.
(Yonhap)
