Staying with the economy.
The government also plans to offer tax breaks to businesses that work to boost their corporate value.
Choi Min-jung has details.
South Korea has unveiled measures to foster the growth of new industries.
The Finance Ministry revealed a roadmap on Wednesday, that aims to incentivize companies that enhance their corporate value and increase shareholder returns.
This will be done by providing a range of tax incentives and benefits.
First, the government plans to reduce corporate taxes by 5 percent, for companies that increase shareholder returns exceeding 5 percent over the span of three years.
Companies can do this by increasing dividends or canceling treasury stocks.
This applies to all companies regardless of size.
The government will also lower income tax rates for the shareholders of companies that have high corporate value.
Accordingly, if the dividend income is 12 million won, the tax burden will be reduced by 100-thousand won.
If the dividend income is 22 million won, the tax burden will be reduced by 200-thousand won.
The government is implementing the new regulations temporarily for three years, but they will first need to be passed by the National Assembly.
Choi Min-jung, Arirang News.
Source : Arirang TV, https://www.arirang.com/news/view?id=272844
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