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피터빈트

PM vows to tackle worsening rich-poor gap

By Yonhap

Published : Nov. 1, 2017 - 09:58

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Prime Minister Lee Nak-yon said Wednesday the government is committed to tackling the worsening gap between rich and poor and that the proposal to raise corporate tax for top-earning businesses is part of such efforts.

Speaking at an annual forum for the country's future, Lee said South Korea has become one of the countries with the largest income gaps, but the problem is worse for the country as the proportion of property income in total earnings is one of the world's biggest.

South Korea's economy is expected to grow over 3 percent this year, but that doesn't mean that income polarization will be resolved and more jobs will be created, Lee said.

Prime minister nominee Lee Nak-yon (Yonhap) Prime minister nominee Lee Nak-yon (Yonhap)

"That's why the government intends to slightly raise the corporate tax rate for super large businesses and reduce the polarization with the money," Lee said. "We're going to (use the money) to help the poor, increase jobs in public sector areas, such as firefighting and policing, and provide support for the private sector to increase hiring."

Last month, the government and the ruling party unveiled plans to increase the corporate tax rate for top-earning companies with annual net profits exceeding 200 billion won ($177 million) to 25 percent from the current 22 percent.

Lee said that about 19 trillion won of next year's national budget was earmarked for projects to increase jobs as part of efforts to narrow the polarization of rich and poor. Of that, 83.4 percent will be provided to the private sector and the rest to the public sector, he said. (Yonhap)

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