Opposition: ‘A 1-Percentage-Point Cut in Corporate Tax and Easing 52-Hour Workweek Rules Should Be Pursued’

[Financial News] The People Power Party plans to push for an amendment to the Corporate Tax Act that would lower corporate tax rates by 1 percentage point across every tax bracket. It also stressed the need to ease 52-hour workweek restrictions to overcome the crisis amid growing concerns about an AI bubble bursting.
Lim I-ja, the People Power Party’s policy committee chair, said at a floor leadership strategy meeting held at the National Assembly of the Republic of Korea on the 13th, “We need to reduce the corporate tax burden, which is above the OECD (Organisation for Economic Co-operation and Development) average, and revive companies’ capacity to invest and their growth engines.” Current corporate tax rates were raised by 1 percentage point across every tax bracket after the Lee Jae Myung administration took office, and the party intends to reverse that increase. Securing the Democratic Party’s cooperation appears difficult.
Lim criticized the Democratic Party, saying, “After pushing through a tougher Commercial Act, it is now trying to force through the so-called ‘Stock Price Suppression Prevention Act,’ which is effectively a tax bomb for businesses.” She added, “The idea of trying to boost stock prices through regulation and taxes is anti-market.”
She continued, “The direct way to revive the stock market is to expand companies’ capacity to invest and grow.” She said, “As an alternative, the People Power Party has introduced a bill to amend the Corporate Tax Act, lowering by one percentage point each the corporate tax rates raised this year and restoring them to last year’s levels.”
Earlier, People Power Party lawmaker Park Soo-young, a member of the National Assembly Planning and Finance Committee, introduced a bill on the 11th to revise corporate tax rates, cutting them by 1 percentage point in every tax bracket. The aim is to boost companies’ vitality and competitiveness and encourage greater investment and employment.
She also argued that the government should heed calls from businesses to ease regulations, including exempting R&D workers from the 52-hour workweek restrictions. Lim said, “President Lee Jae Myung staged a major publicity campaign at the groundbreaking ceremony for a mega-project in the Chungcheong region, accompanied by Chairman Lee Jae-yong.” She noted, “Criticism is pouring in that, without offering any practical solution to overcome the crisis, he is merely putting on a show for appearances, using a corporate chief as a backdrop.”
She added, “The government has turned its back on the key issues that industrial sites are urgently calling for.” She said, “On issues including easing the 52-hour workweek system in super-regional special zones, the government cannot provide answers, citing disagreements among ministries as an excuse.”
Lim urged, “If only glossy blueprints are presented with no substance, the burden and risks will fall on businesses and the economy as a whole. President Lee must immediately resolve the 52-hour workweek issue that is holding back workplaces.”

[email protected] Lee Hae-ram Reporter