"Semiconductors Taken by Taiwan"... Joo Ho-young Pressures Democratic Party Citing Kim Jin-pyo

Concerns Over Losing Investment Attraction to Taiwan and Other Countries
Emphasis on Reaching Agreement Within the Regular National Assembly

Joo Ho-young, floor leader of the People Power Party, is attending the party strategy meeting held at the National Assembly on the 9th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Kum Boryeong, Kwon Hyunji] Joo Ho-young, leader of the People Power Party, raised his voice on the 9th, saying, "If companies fail to secure tax competitiveness, future national industries such as semiconductors will be taken away by other countries including Taiwan."

Through the party floor meeting held at the National Assembly that morning, Floor Leader Joo said, "In the context of the global semiconductor supply chain restructuring, lowering corporate tax is directly linked to national competitiveness."

He increased pressure on the opposition by citing the logic used by Kim Jin-pyo, the National Assembly Speaker from the Democratic Party, who persuaded the Democratic Party opposing the corporate tax cut. Speaker Kim proposed a compromise plan to lower the corporate tax rate from the current 25% to 22% as per the government’s proposal but to delay its implementation by two years.

Floor Leader Joo pointed out, "Our country's corporate tax competitiveness dropped from 27th place to 39th place this year after the Moon Jae-in administration raised the rate from 22% to 25% in 2018. In contrast, Taiwan, a competing country, has a corporate tax rate of 20% and no local taxes at all. If we do not lower the corporate tax as the Democratic Party insists, our country will have a combined highest corporate tax rate of 27.5%, including 25% corporate tax and 2.5% local tax. Who would choose to come to our country instead of Taiwan?"

He criticized, "This is a very good compromise plan to ensure that investment costs leaving China and companies do not go to other countries with favorable corporate tax rates, especially Taiwan, but invest and build factories in our country. Yet, even this is not accepted by the Democratic Party."