Ahn Dogeol: "Income Tax Reduction for Workers in Non-Capital Region Opportunity Development Zones"

Representative Proposal of the Restriction of Special Taxation Act
"Attracting Local Population and Securing Corporate Workforce"

Ando Geol, Member of the National Assembly.

On the 7th, Democratic Party lawmaker Ahn Dogeol (Gwangju Dongnam-eul) proposed a revision to the Restriction of Special Taxation Act, which centers on providing income tax reductions for workers in Opportunity Development Zones to promote balanced regional development outside the capital area and encourage settlement in local regions.

The current law provides tax benefits such as corporate tax reductions for private companies in Opportunity Development Zones, but excludes tax credits for employees. Especially in non-capital regions, securing a workforce is crucial for nurturing industries and companies, leading to calls for strong employment incentives such as tax benefits for employees of private companies within these zones.

The proposed amendment stipulates that employees of companies located in Opportunity Development Zones will receive a 100% income tax reduction for five years from the date of employment. For the following five years, a 50% income tax reduction will apply, with an annual cap of 5 million won. In addition, periods of military service and parental leave are excluded from the calculation of the tax reduction period, ensuring that the benefit fully covers actual working periods.

Representative Ahn emphasized, "Income tax reduction is a powerful incentive that can bridge economic gaps between regions and encourage people to settle in local areas," adding, "Through this, it will provide a foundation to overcome the crisis of local extinction and achieve sustainable development."

He also expressed hope that "if the amendment passes, population inflow into non-capital regions will accelerate, contributing to the revitalization of local economies centered around Opportunity Development Zones," and added, "By providing both jobs and income benefits in local areas, it will have a positive impact on easing population concentration in the capital area and alleviating labor shortages in local regions."