Korea, Vietnam to enhance tax cooperation
The National Tax Service of Korea held the 24th Korea-Vietnam Bilateral Commissioners' Meeting in Hanoi on Tuesday, in collaboration with the General Department of Taxation of Vietnam.
The meeting aimed to address tax-related challenges faced by Korean companies operating in Vietnam.
Vietnam is Korea's third-largest trading partner, with a trade volume of $86.8 billion, making it a key investment destination for multinational companies, including Korean firms.
This bilateral meeting, first established in 2003, has been held regularly and marked the first in-person session since the Study Group on Asia-Pacific Tax Administration and Research meeting in October 2023.
NTS Commissioner Kang Min-su and GDT General Director Mai Xuan Thanh attended the event to enhance tax cooperation and discuss the latest developments in tax administration.
In an era of rapid digital transformation, both tax commissioners agreed to upgrade digital tax administration to enhance operational efficiency.
Commissioner Kang shared Korea's vision for digital tax services, highlighting various artificial intelligence applications designed to streamline tax administration.
Ahead of the bilateral meeting, a local roundtable discussion was held to facilitate the Mutual Agreement Procedure for resolving double taxation issues and ensuring the efficient processing of value-added tax refunds.
At the conclusion of the meeting, the two commissioners agreed to renew the Korea-Vietnam Tax Cooperation Memorandum of Understanding, which aims to reinforce bilateral tax cooperation through regular commissioners' meetings, regional dialogues, and working-level exchanges.
The NTS reaffirmed its commitment to enhancing administrative cooperation with key economic partners and supporting Korean businesses abroad in achieving a more stable and predictable tax environment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
14 hours ago
- Korea Herald
Korea's economy will run like a business for growth: finance minister nominee
Koo Yoon-cheol pushes productivity, real growth to boost public livelihoods South Korea's finance minister nominee, Koo Yoon-cheol, vowed Sunday to manage the national economy with the rigor of a private company, focusing on return on investment and making government spending more productive. 'South Korea must pursue real growth, and that requires a fundamental overhaul,' Koo said during a press briefing shortly after his nomination was announced. 'We must run the economy like 'Corporation Korea,' where the people are our shareholders.' Koo, tapped as the first finance minister under President Lee Jae Myung, will be responsible for steering the new administration's economic policy. His comments aligned closely with Lee's top priority of improving public livelihoods, a message the president has underscored since taking office. 'I feel a deep sense of responsibility in being nominated at a time when the Korean economy faces serious challenges,' Koo said. 'But responsibility alone isn't enough — we must act. The most urgent task is stabilizing prices and easing the burden on ordinary citizens.' Koo also pledged to revitalize regional economies outside the capital area and address seasonal safety concerns as Korea approaches the peak of summer. Externally, he pointed to rising risks from US tariff negotiations, the war in Ukraine, and tensions in the Middle East. 'I will respond actively and step by step to the challenges confronting our economy,' he said. A veteran of budget policy, Koo likened managing the national economy to running a business — where every investment must be justified by returns. 'It all begins with cost-benefit thinking,' he said. 'A company that makes bad investments eventually fails. The same applies to a country. Korea must ensure that every unit of spending delivers value — whether by cutting costs, raising revenue, or finding new engines of growth.' Koo reaffirmed the Lee administration's expansionary fiscal stance, but with a focus on measurable outcomes. 'We must approach fiscal policy from a performance-based perspective," he said. "If more spending leads to growth, we spend more. If it doesn't, we cut back. In the short term, we operate flexibly. But in the long term, what matters is spending productively — even if that means spending more — to ensure sustainable growth.' He also stressed the need for systemic reform and future-oriented investments. 'We'll invest strategically in emerging industries like AI to build new growth engines, ensuring all citizens share in the opportunities and rewards of economic expansion and creating a virtuous circle between national progress and public well-being," said Koo. A visiting professor of economics at Seoul National University, the minister nominee has long argued that AI is Korea's next great economic engine. In April, he reportedly said, 'Korea's golden time lies in the next five years — our future depends on AI.' The seasoned bureaucrat returns to the Finance Ministry after five years, having last served as second vice finance minister under President Moon Jae-in, overseeing budget and fiscal policy until May 2020. He previously held several high-level posts at the ministry, including director general for budget planning and for social spending, and was widely regarded as the architect of Moon's 'people-centered economy.' He also held senior positions in the presidential office under President Roh Moo-hyun, including director of government affairs and secretary for personnel. From May 2020 to June 2022, he led the office for government policy coordination. In announcing his nomination, the presidential office described Koo as 'someone who has long explored how to drive innovation in Korea,' and 'ideally positioned to chart a path for national growth, backed by deep expertise in finance and policy.' Koo steps into the role with considerable responsibility, following a nearly two-month vacancy after the sudden resignation of former finance minister Choi Sang-mok. Although the finance minister typically also serves as deputy prime minister for the economy, the presidential office did not clarify whether Koo would take on that role — fueling speculation of a broader structural shake-up. President Lee has previously proposed splitting the Finance Ministry into two branches, one for budgeting and another for fiscal policy, to curb its influence and bring budgetary oversight closer to the presidential office. He will be formally appointed following a parliamentary confirmation hearing. Once confirmed, Koo will immediately face a packed agenda — setting the new administration's economic direction, preparing next year's budget, and responding to trade risks and domestic headwinds. 'Having risen from one of the world's poorest countries to the brink of developed-nation status, Korea has already experienced what it means to lead globally — and I believe we can do it again, and must,' Koo said. 'The country must achieve real growth to ensure people's happiness. I will devote myself to making that happen — and to making sure the benefits of that growth return to the people and improve their lives.'
Korea Herald
18 hours ago
- Korea Herald
Economic technocrat-turned-Doosan executive nominated as industry minister
Kim Jung-kwan, a former Finance Ministry official-turned-industry executive, has been nominated to lead South Korea's Ministry of Trade, Industry and Energy, bringing both government and corporate expertise to the role. President Lee Jae Myung tapped Kim, who currently serves as executive vice president and chief marketing officer at Doosan Enerbility, a major Korean engineering and plant construction company, as the new industry minister. The move is seen as part of Lee's drive to accelerate the country's transition to renewable energy and advance next-generation sectors such as offshore wind power and small modular reactors. Before joining Doosan in 2018, Kim built an extensive career with experience and expertise in economic policy within government, holding key positions at the Ministry of Economy and Finance, the Bank of Korea and the International Bank for Reconstruction and Development, the lending arm of the World Bank Group.
Korea Herald
18 hours ago
- Korea Herald
Hyundai, Kia gain US market share amid tariffs
Hybrid vehicles, pre-tariff inventory strategy driving Korean automakers' growth Hyundai Motor and Kia achieved a combined 11 percent market share in the United States in the first five months of this year as the Korean automakers rolled out hybrid vehicles ahead of new US tariffs and carried out timely promotions. According to market analysis firm Wards Intelligence on Sunday, Hyundai Motor and Kia sold a total of 752,778 vehicles in the January-to-May period this year, up 0.5 percentage point from the same period last year. Hyundai sold 400,116 units while Kia sold 352,662 units. The Korean automakers' combined market share in the US has continuously grown this year, from a 10.5 percent market share in January, when they sold 116,362 cars. Their monthly market share also showed a steady upward trend without a single month of decline during the first five months of the year. Industry watchers attribute the strong performance to Hyundai and Kia's proactive response to the shifting trade landscape ahead of the Trump administration's planned 25 percent tariff on auto imports. The Korean automakers appear to have capitalized on US consumers hurrying to buy cars in March and April in advance of an expected rise in car prices due to the tariffs. Hyundai and Kia sold 162,615 cars in April, up 16.3 percent on-year — their best April figure on record — outpacing the industry's 11.1 percent year-on-year increase that month. Sales of hybrid vehicles in April soared 65.8 percent on-year to 26,134. Despite a steep decline in the US auto market in May, the Korean automakers sold 170,251 units in that month for a year-on-year increase of 6.7 percent, more than doubling the overall auto industry's sales growth of 2.5 percent. '(Hyundai and Kia) preemptively moved to stockpile inventory before the tariffs went into effect in April to meet the increase in demand from US customers,' said an auto industry official. 'They also set up an expanded lineup of hybrid vehicles -- which have been gaining popularity amid slowing momentum in the transition to electric vehicles -- to gain a competitive edge in the US market.' The outlook for the second half of this year, however, remains grim for the Korean automakers as they run out of pre-tariff inventory and face pressure to increase their prices. The Korean government has begun discussing trade policies with the US to minimize damage to Korea's export-heavy industries, but US President Donald Trump mentioned earlier this month that the US may hike auto tariffs in the 'not too distant future.'
