Yoon's Close Aide Participates in Cement Industry Win-Win Fund Launch Ceremony... Attention on Cement Tax Outcome

Cement Industry to Launch Regional Community Contribution Fund Management Committee on the 29th
Amid Cement Tax Controversy... Kwon Seong-dong, Lee Cheol-gyu, and Yoo Sang-beom of the People Power Party Attend
"Through the Fund Management Committee, We Will Provide Tailored Support to Communities and Residents"

On the 29th, at the Federation of Korean Industries building in Yeouido, Seoul, the 'Cement Industry Regional Community Contribution Win-Win Fund Launch Ceremony' was held. Attendees included Lee Cheol-gyu, Chief Advisor to President Yoon Suk-yeol's Transition Team (third from the left in the front row), Kwon Seong-dong, Floor Leader of the People Power Party, Yoo Sang-beom, Transition Committee Member, and Lee Hyun-jun, President of the Korea Cement Association (CEO of Ssangyong C&E).
[Photo by Korea Cement Association]

[Asia Economy Reporter Kwak Min-jae] “It is better to create a win-win fund that provides more benefits to local residents than a cement tax. I sincerely appreciate that the Regional Fund Management Committee was properly launched within a year.” (Kwon Seong-dong, People Power Party lawmaker)

The cement industry is actively pushing to establish a win-win fund worth 25 billion KRW annually. Close lawmakers of President-elect Yoon Seok-yeol, including People Power Party lawmaker Kwon Seong-dong, are participating as management committee members to support the initiative. In contrast, discussions on the so-called 'cement tax' are underway mainly among Democratic Party lawmakers and local civic groups, drawing attention to the possibility of legislation.

The Korea Cement Association held the launch ceremony for the ‘Cement Industry Regional Community Contribution Win-Win Fund’ on the 29th at the Federation of Korean Industries Conference Center in Yeouido, Seoul. The event was attended by representatives of seven cement companies and Park Jin-gyu, First Vice Minister of the Ministry of Trade, Industry and Energy. People Power Party lawmakers Kwon Seong-dong, Lee Cheol-gyu, and Yoo Sang-beom, known to be close to President-elect Yoon, also participated.

Earlier, Democratic Party lawmakers Lee Gae-ho and Lee Hyung-seok proposed the Cement Tax Act, which would impose a local resource facility tax of 500 to 1,000 KRW per ton of cement produced, citing the expansion of tax revenue for metropolitan local governments such as Gangwon and Chungbuk and compensation for local residents’ damages. The cement industry opposed this, arguing it would be double taxation since the local resource facility tax is already paid at the limestone mining stage.

In response, the cement industry has prepared and promoted a plan to voluntarily collect 25 billion KRW annually as a fund instead of introducing the cement tax, directly supporting local communities through rural medical support projects, scholarship foundation operations and educational support projects, and protection projects for natural monuments and karst formations. Discussions on the cement win-win fund began in February last year through an agreement between four lawmakers from the cement-producing regions of Gangwon and Chungbuk (Kwon Seong-dong, Lee Cheol-gyu, Yoo Sang-beom, and Eom Tae-young) and representatives of seven cement companies.

At the launch ceremony, the ‘Major Plans and Mid-to-Long-Term Vision for Regional Community Contribution’ prepared through consultations between the cement industry, lawmakers’ offices, and the Regional Fund Management Committee was announced. A joint declaration expressing the intention to continuously expand social contribution activities was also released.

Lee Hyun-jun, chairman of the Korea Cement Association (CEO of Ssangyong C&E), said, “The Fund Management Committee is composed of representatives of the region, ensuring transparency, fairness, and legitimacy in fund operation, and can provide tailored assistance that local communities and residents truly need. The cement industry will strengthen the establishment of an ESG (Environmental, Social, and Governance) management system and strive to ensure that social contribution projects proceed properly.”