SEOUL - Korea has instated a new income tax, which will raise tax liabilities for the country’s richest individuals. On December 31st the National Assembly of Korea voted in a bill to introduce a new income tax bracket and a higher rate of income tax for the country’s highest earning taxpayers. The new tax rate of 38 percent will apply to individuals earning in excess of KRW 300 million annually. Previously, the highest individual income tax rate in Korea was 35 percent. ... Read More

SEOUL - Korea’s wealthiest taxpayers and largest businesses could soon be facing increased tax rates, as the leading party announces its intention to instate new tax legislation. On November 6th Korea’s ruling Grand National Party (GNP) released a statement saying that it is currently conducting research into the feasibility of raising tax obligations for the country’s highest earners.The GNP has not yet revealed what specific taxes it considers to be the most likely, but it was indicated that an increased top marginal ... Read More

South Korea is looking to instate a new tax on the so called "kimchi bonds", in order to control the country's short-term external debts and slow down the excessive appreciation of the national currency. In a statement issued on September 7th the Finance Ministry of South Korea revealed that foreign investors will soon be faced with a new 14 percent tax on all interest incomes earned from foreign currency bonds sold in the country. These financial instruments have come to be commonly ... Read More

In an effort to ease escalating upward inflationary pressure in Korea, the government could instate tax cuts on crude oil imported into the country. Speaking during a government session at the National Assembly on April 6th, South Korean Prime Minister Kim Hwang-sik explained that the government will run an extensive study on the impact that tax cuts on oil will have on overall tax revenues collection, and the effect that the changes will have on the national energy sector. The government will consider ... Read More

A new tax could be instated in South Korea to pay for the potentially exuberant costs of one day reunifying the country with its Northern counterpart. In a speech commemorating the 65th anniversary of Korea’s liberation from Japanese occupation, Lee Myung-bak, President of South Korea, restated that reunification between North and South Korea will definitely come between. However, the process could cost as much as USD 1 000 billion, and fiscal steps need to be taken now to ensure its future economic viability. ... Read More