Candidate Koo Yoon-cheol: "Corporate Tax Somewhat Low"... Is the Yoon Administration Reversing the 'Tax Cut Policy'?

[Financial News] Deputy Prime Minister and Minister of Strategy and Finance candidate Koo Yoon-cheol stated in a written response submitted ahead of the National Assembly confirmation hearing on the 17th, "When comparing the corporate tax level with countries of similar economic size among OECD countries, the tax rate including local taxes is somewhat low," and "The revenue base was weakened due to the economic slowdown and tax rate cuts during the previous administration."
 This is the first mention of a 'potential increase' since the Yoon Seok-yeol administration reduced the maximum corporate tax rate from 25% to 24% in 2022.
 According to the National Assembly on the 16th, candidate Koo added, "Securing stable revenue is important to restore fiscal sustainability." Last year's corporate tax revenue was 62.5 trillion won, down 17.9 trillion won from the previous year, cited as a cause of the 'tax revenue shortfall.' This statement from the candidate suggests that the new administration is exploring a shift from a tax cut focus to expanding revenue through tax restoration or increases.
 Candidate Koo expressed his intention to review major tax systems such as real estate, finance, and capital markets.
 Regarding strengthening taxation on rental income, he agreed on the "necessity of appropriate taxation." However, he added, "The increase in tax burden on small-scale landlords such as retirees and the effect of passing it on to tenants should also be considered."
 Regarding separate taxation of dividend income, candidate Koo stated, "It can be improved in a direction that induces asset formation and capital market activation." He also mentioned that the additional increase in the simplified taxation standard (currently 104 million won) should be approached cautiously as it has recently been increased by more than double.
 He drew a line on the government's artificial stock market boosting measures. Candidate Koo stated, "Stock market boosting by government intervention is contrary to genuine growth philosophy," and "We will transition to productive finance through fostering advanced industries such as artificial intelligence (AI), improving corporate governance, and establishing a fair market." This is interpreted as an indication of the will to overcome the Korea discount through structural reform centered on system and strength.
 Regarding basic income, candidate Koo stated, "It is worth considering to improve quality of life and resolve inequality." Regarding stablecoins based on the Korean won, he responded, "We will closely examine the impact on monetary policy and the financial market."
spring@fnnews.com Lee Bo-mi Reporter