AMCHAM welcomes Yoon’s policy to expand corporate tax breaks
By Hong Yoo, The Korea Herald - The American Chamber of Commerce in Korea on Friday welcomed the Yoon Suk-yeol administration’s policy to expand corporate tax breaks, which are aimed at promoting active investments and job creation.
“AMCHAM greatly appreciates the
willingness of the Korean Government to listen and promptly respond to the
concerns and recommendations of AMCHAM and the foreign business community,”
Chairman and CEO of AMCHAM Korea James Kim said in a statement.
“I also appreciate that the
Korean government has recognized the importance of FDI (foreign direct
investment) inducement and shown that they value stakeholder input from the
international business community,” Kim said. “As the US is one of the largest
FDI investors in Korea, I believe we could do better with these reform measures
The Ministry of Economy and
Finance of Korea on Thursday unveiled a policy to revise the taxation system,
which is targeted at cutting corporate and personal income taxes, including
lowering of the maximum taxation rate for businesses from 25 percent to 22
AMCHAM had previously called
for a tax reform for foreign businesses and individuals by delivering a letter
to President Yoon earlier this year on behalf of the international business
community in Korea.
In the letter, 34 AMCHAM board
members addressed the need to restore the flat tax rate for foreign residents,
restructure inheritance tax obligations on foreign residents, improve the
flexibility of employment conditions, mitigate CEO risk, and improve the
regulatory environment to ensure proactive communication in support of
transforming Korea’s position as a regional headquarter in Asia.
“I am seeing more interest than
ever from U.S. companies in investing in Korea across all industries,” Kim said.
“Korea can increase its economic dynamism and become attractive to foreign
investors by adjusting to meet global standards. Korea’s corporate and
individual tax regime could be made much more competitive compared to its peer
countries in Asia.”