Corporate Tax

Severe corporate tax imbalance in South Korea

People Power Party legislator Yun Chang-hyun noted on Sept. 6 that a total of 838,008 companies in South Korea earned 5,272,1136 trillion won and paid 53,5714 trillion won in corporate tax last year. “The 838 companies in the top 0.1 percent group earned 1,875,9605 trillion won and paid 32,637 trillion won in corporate taxes,” he said.

In short, the top 0.1 percent of corporate income contributed 60.9 percent of total corporate tax last year. Additionally, during this period, the top 1 percent and the top 10 percent contributed 82.7 percent and 96.1 percent of the total, respectively. The top 5, Samsung Electronics, Hyundai Motor Company, Kia, SK Hynix and LG Electronics, contributed 9 percent of the total last year.

“This skew is in fact serious insofar as 48.7 percent of all companies paid no corporation tax at all in 2019,” emphasized the legislator.

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