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최종편집 : 2018.6.9 토 12:16
CoverControversial Issues
Corporate Tax Hike in KoreaIntroduction
Park Ji-yeon  |  std03080@cau.ac.kr
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승인 2018.06.07  22:58:23
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           A corporation tax is a tax on a corporation’s income, which is similar to income tax, which imposes a tax on an individual’s income. The increase in corporate tax has long been a controversy between the progressive and conservative camps. After the Lee Myung-bak administration decreased the maximum tariff of corporate tax by 3% in 2008, its impact has lasted until recently. Therefore, the effective tax rate of corporate tax in Korea has fallen short of the average of OECD countries (21.8%). As a result, this corporate tax issue was also the biggest issue in the 19th presidential election. President Moon pledged to increase corporate tax to 25% during his campaign. The opposition from conservative forces, including Representative Hong Joon-pyo, was also strong. Some economists were worried that the higher corporate tax would eventually hamper corporate development. Despite this controversy, the government raised the maximum corporate tax rate to 25% at the end of last year. Still, the confrontation between the government and businesses continues. 

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