Latest news with #YoonSukYeol
Korea Herald
15 hours ago
- Business
- Korea Herald
Ruling bloc to raise corporate tax, reversing Yoon-era cut
Corporate tax rate to be raised by 1%p to 25%, minimum holding for capital gains tax to be lowered to W1b South Korea's ruling bloc on Tuesday outlined plans to raise the corporate tax rate and expand the scope of capital gains taxation, signaling a U-turn from policies aimed at tax relief under the previous conservative Yoon Suk Yeol administration. Following a policy consultation held at the National Assembly in Seoul, the government and the ruling Democratic Party said they had agreed to raise the top corporate tax rate from the current 24 percent to 25 percent — the same level as in 2022, before former President Yoon's administration lowered it by 1 percentage point. The plan also includes widening the scope of those subject to capital gains tax. Under current law, individuals who own stocks worth more than 5 billion won (approximately $3.6 million) in a company listed on the Kospi, Kosdaq or Konex — the three markets operated by the Korea Exchange — are subject to capital gains tax when they sell. The ruling bloc aims to lower that threshold to 1 billion won per listed company to broaden the tax base. For unlisted companies, capital gains tax applies to all shareholders regardless of their ownership size. Rep. Chung Tae-ho of the Democratic Party of Korea, a senior member of the Assembly's Strategy and Finance Committee, said the tax changes represent a 'normalization' of the system, restoring tax policies to the levels in place before the Yoon government. The corporate tax rate has seen several changes over the past decades, largely influenced by the shift in political power. It was lowered from 25 percent to 22 percent under President Lee Myung-bak in 2009, raised back to 25 percent under President Moon Jae-in in 2017, and then brought down to 24 percent in 2022 under the Yoon administration, which argued the cut would spur corporate investment. Chung, however, emphasized that 'there is little evidence that the corporate tax cut had a direct effect on investment,' adding that restoring the higher rate would help secure a stable tax base. Regarding the proposed dividend tax scheme, the Ministry of Economy and Finance said it is 'necessary,' citing the importance of redirecting capital flows from the real estate market to capital markets and supporting the growth of strategic and high-tech industries. Meanwhile, the government and the ruling party also discussed introducing a separate taxation scheme for dividend income to encourage shareholder-friendly practices and stimulate the capital market. Currently, dividend and interest income exceeding 20 million won per year is subject to progressive taxation, with rates reaching up to 49.5 percent. Under the proposed changes, a portion of dividend income could be taxed separately rather than being combined with other income, potentially reducing the overall tax burden. Specific criteria for this scheme have not yet been finalized. Tuesday's policy consultation reportedly lasted about 90 minutes and was attended by Democratic Party lawmakers from the Assembly's Strategy and Finance Committee, along with First Vice Minister of Economy and Finance Lee Hyoung-il. Moving forward, the Democratic Party said it will continue discussions through a special task force on tax reform, chaired by three-term lawmaker Kim Yeong-jin, with Rep. Chung Tae-ho serving as secretary.
Korea Herald
17 hours ago
- Business
- Korea Herald
European chamber raises alarm over Korea's 'Yellow Envelope' bill
The European Chamber of Commerce in Korea is urging a revision of the proposed 'Yellow Envelope Law,' warning that its implementation could prompt foreign companies to withdraw from the Korean market. According to the National Assembly on Tuesday, the bill, which would revise Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act, passed the Environment and Labor Committee's plenary session Monday. The Democratic Party-led proposal was twice vetoed under former President Yoon Suk Yeol, but is being revived under the new DP-led administration. A key provision in the amendment expands the definition of 'employer' to include any entity that 'substantially and specifically controls and determines working conditions,' even if it is not a signatory to an employment contract. The intention is to cover subcontracted laborers on a company's worksite. The ECCK stated that this expanded definition of 'employer' broadens the scope of legal liability, thereby undermining the principle of legal certainty. 'Given the numerous criminal sanctions imposed on employers under the Trade Union Act, this vague and expanded definition may treat business operators as potential criminals and significantly discourage business activity,' the chamber said in a statement Monday. 'The impact is particularly severe for foreign-invested companies, which are highly sensitive to legal risks stemming from labor regulations.' The ECCK also warned of increased conflicts between primary contractors and subcontractors, a rise in strikes by subcontracted workers, and destabilization of the subcontracting ecosystem. It added that the law could shift labor culture from dialogue to confrontation. Citing these potential risks, the ECCK, which represents around 400 European companies with Korean subsidiaries, is calling for a revision of the amended law.
News18
18 hours ago
- Politics
- News18
World News Live Updates: Former Colombian president Álvaro Uribe convicted of bribery and witness tampering
Live now Last Updated: From geopolitics to climate, tech to social change, News18 World live blog delivers real-time updates on what is the latest from around the globe News18 From geopolitics to climate, tech to social change, News18 World live blog delivers real-time updates on what is the latest from around the globe Jul 29, 2025 09:15 IST North Korea demands recognition as nuclear state to resume talks The sister of North Korean leader Kim Jong Un, Kim Yo Jong, has dismissed current US diplomatic overtures, stating that Washington must accept her country as a nuclear weapons state for talks to restart, as per a report in AP. While describing the personal relationship between Kim Jong Un and US President Donald Trump as 'not bad,' she asserted that North Korea will not give up its nuclear arsenal. Her statement suggests Pyongyang is rejecting the current US framework for denuclearization and is seeking a new approach that acknowledges its nuclear status as a precondition for any future negotiations. Jul 29, 2025 09:07 IST North Korea rejects dialogue overtures from South Korean President Yoon Suk Yeol In its first official comment on South Korean President Yoon Suk Yeol's administration, North Korea has dismissed his calls for dialogue, according to a report in The New York Times. The rejection is a significant setback for any immediate prospects of improving inter-Korean relations. President Yoon had proposed a 'bold plan' offering substantial economic aid to North Korea, contingent on Pyongyang taking concrete steps toward denuclearization. This response from North Korea continues a period of heightened tensions on the peninsula, marked by its frequent missile tests and strong opposition to joint military exercises between South Korea and the US. Jul 29, 2025 09:07 IST Israeli settler kills Palestinian activist from award-winning film in West Bank An Israeli settler has reportedly killed Palestinian activist Odeh Hadalin in the occupied West Bank community of Masafer Yatta, Al Jazeera says in a report. Hadalin was a resident featured in the documentary 'No Other Land,' which won an audience award at the 2024 Berlin Film Festival for its portrayal of the community's struggle against forced displacement. The incident occurs amid a documented increase in settler violence in the West Bank and the ongoing threat of eviction faced by residents of Masafer Yatta, an area designated by Israel as a military firing zone. The killing has prompted renewed calls for the protection of Palestinian civilians and has drawn further international scrutiny to Israeli settlement activities, which are considered illegal under international law. Jul 29, 2025 09:07 IST Global liver cancer cases projected to nearly double by 2050, study finds Global liver cancer cases are projected to surge from 870,000 annually to 1.52 million by 2050 if current trends persist, as per a report in France 24. The study, published in The Lancet, identifies key drivers for the increase as obesity, alcohol consumption, and hepatitis. Citing data from the Global Cancer Observatory, the report notes that liver cancer is currently the sixth most common cancer worldwide, prompting calls from researchers for enhanced prevention efforts to mitigate the anticipated rise in cases and the subsequent strain on global healthcare systems. Jul 29, 2025 09:07 IST Global demand and drought strain Morocco's argan oil industry High global demand for argan oil from the beauty industry, coupled with severe drought conditions, is threatening Morocco's argan forests and the economic stability of the rural women who depend on its production, according to a report in AP. The strain is causing deforestation and accelerating desertification within the Arganeraie Biosphere Reserve, an ecosystem designated by UNESCO in 1998. This situation poses significant supply chain and reputational risks for the global cosmetics industry, which relies on this 'liquid gold.' Furthermore, it highlights an economic disparity where local female producers often receive a disproportionately small share of the profits from the high-value international market, raising concerns about the long-term sustainability and ethics of the current production model.
Korea Herald
19 hours ago
- Politics
- Korea Herald
Ex-President Yoon snubs questioning by special counsel in probe into ex-first lady
Arrested former President Yoon Suk Yeol did not appear for questioning by a special counsel team Tuesday over an investigation into various allegations surrounding his wife, former first lady Kim Keon Hee. Yoon, who is currently in custody at Seoul Detention Center, south of Seoul, did not show up at special counsel Min Joong-ki's office for his scheduled appearance over allegations of him and his wife meddling in election nominations. Yoon's side has not submitted any opinions about his non-appearance but the former president has rejected questioning by another special counsel team investigating his martial law decree, citing health reasons. In response, Min's team notified Yoon's side for Yoon to appear for questioning at 10 a.m. Wednesday. If Yoon continues to refuse to show up for questioning, the team may consider bringing him in by force. Yoon is suspected of interfering in the nomination of a People Power Party candidate for the 2022 by-elections. He has been accused of securing the party's nomination of former Rep. Kim Young-sun for the 2022 by-elections in return for receiving a free opinion poll from self-proclaimed power broker Myung Tae-kyun ahead of the presidential election that year. The special counsel team has raided the homes and offices of Reps. Yoon Sang-hyun and Lee Jun-seok, who respectively served as the head of the PPP's nomination committee and the party's leader at the time of the 2022 election. Yoon, the PPP lawmaker, reportedly told investigators that he spoke with the former president about former Rep. Kim's nomination over the phone when he appeared for questioning on Sunday. The former president has also been accused of violating the Public Official Election Act for allegedly speaking a falsehood in a PPP presidential primary debate in 2021. Yoon has been under detention since July 10 when a Seoul court issued a warrant for his arrest over his failed martial law bid. (Yonhap)
NZ Herald
21 hours ago
- Politics
- NZ Herald
Since his election, South Korea's President has tried reverse the hardline stance of his predecessor towards Pyongyang
She added that South Korean officials were 'spinning a daydream' over the potential invitation to the conference. She challenged South Korea's 'blind trust' in its alliance with the United States, saying it makes the new government no different from the previous one. 'We clarify once again the official stand that no matter what policy is adopted and whatever proposal is made in Seoul, we have no interest in it and there is neither the reason to meet nor the issue to be discussed with' South Korea, Kim Yo Jong said in a statement carried in state media. She cited the upcoming joint drills between the US and South Korea next month. The drills, which the allies say are defensive in nature, have long been an irritant for the North Korean regime, which views them as hostile and practices for invasion. Under previous US and South Korean administrations, the allies suspended or scaled back their drills as they worked to engage North Korea through diplomacy and denuclearisation talks. Those talks collapsed in 2019. In 2022, under the conservative South Korean President Yoon Suk Yeol, the US and South Korean militaries resumed large-scale field exercises. Following Kim's remarks, South Korea's new Unification Minister, Chung Dong Young, told reporters he plans to propose adjusting the military drills scheduled for mid-August. Relations between the two Koreas deteriorated under Yoon, who hewed closely with Washington and emphasised military co-operation and strengthening deterrence efforts with the US. Lee has said it is important for South Korea to strengthen its security alliance with the US and has said he would co-operate with both Washington and Tokyo. But he has also said he wants to improve relations with Pyongyang. President Donald Trump has also expressed interest in re-engaging in talks with Kim Jong Un, as he did in his first term. However, North Korea has become one of Russian President Vladimir Putin's staunchest supporters since Russia's invasion of Ukraine in 2022, and analysts say it is unclear whether Pyongyang has much interest in engaging with Trump again. In January 2024, North Korea also took a major step of declaring South Korea an enemy state and formally abandoning the nation's long-standing principle of peacefully reunifying the two halves of the peninsula. The North Korean regime began removing and blowing up symbolic references to reunification, including monuments and roads connecting the two Koreas. Kim Yo Jong reiterated that the relationship between the two nations has changed irreversibly. 'No matter how desperately the Lee Jae Myung Government may … pretend they do all sorts of righteous things to attract our attention and receive international attention, there can be no change in our state's understanding of the enemy,' she said. 'And they cannot turn back the hands of the clock of the history, which has radically changed the character of inter-Korean relations.'
