The Democratic Party to Promote Legislation on 'Profit Sharing System' in February... Reviewing Cases of Boeing and Rolls-Royce

Hong Ik-pyo, head of the Inequality Resolution Task Force, is delivering opening remarks at the 1st meeting of the Post-Corona Inequality Resolution Task Force held on the 15th at the National Assembly Members' Office Building. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Wondara] The Democratic Party of Korea has decided to push for legislation on the 'Profit Sharing System' within February.

Hong Ik-pyo, chairman of the Democratic Party's Policy Committee and head of the Post-Corona Inequality Resolution Task Force (TF), said to reporters after the TF's first meeting at the National Assembly on the afternoon of the 15th, "There was a consensus to submit the necessary laws and prioritize addressing inequality in the February National Assembly session."

Chairman Hong cited overseas companies such as Boeing in the United States and Rolls-Royce in the United Kingdom as examples. Boeing and Rolls-Royce implement a 'risk and profit sharing partnership' where manufacturers share costs through investments and share profits with their partner companies when developing new products.

Chairman Hong explained, "We reviewed domestic and overseas cases, focusing on laws already submitted. When we talk about the profit sharing system, people tend to focus on sharing the profits currently in their own pockets, but looking at overseas cases, there is also the concept of collaborating to generate profits and then sharing those profits." Regarding the consideration of tax incentives, he said, "It is not concrete yet, but we will consider it if necessary."

Lee Nak-yeon, leader of the Democratic Party, attended the meeting and said, "We will review successful cases at home and abroad, first examine the related bills already submitted to the National Assembly, and then seek alternatives with various lawmakers," adding, "I hope meaningful activities will be carried out with speed." Earlier that day, at the Supreme Council meeting held at the National Assembly, Leader Lee emphasized, "The Lee Myung-bak administration promoted the excess profit sharing system, and the Park Geun-hye administration implemented the corporate income return tax system," and added, "I do not consider the Lee Myung-bak and Park Geun-hye administrations as socialist governments."