"Telecommunications Expenses Are Living Costs"...Lee Hae Min Proposes Tax Deduction Bill

Institutional Support for "Digital Living Expenses"...
Up to 200,000 Won Deductible
Deduction Rate Up to 25% for Low-Income and Disabled Households

Lee Hae Min, Jo Guk Innovation Party member. Photo by Kim Hyun Min

Lee Hae Min, a member of the Jo Guk Innovation Party, proposed the "Telecommunications Expense Tax Deduction Act" (Partial Amendment to the Income Tax Act) on June 25 to reduce the telecommunications cost burden for all citizens. The intent is to include telecommunications expenses as a tax-deductible item, similar to medical and educational expenses, given that the internet and mobile services have become essential infrastructure in daily life.

This bill allows citizens with comprehensive income, such as earned income, business income, or pension income, to deduct a portion of their annual telecommunications expenses incurred for themselves and their dependents from their income tax. Specifically, ordinary households would be able to deduct 15% of their annual telecommunications expenses, while digitally vulnerable groups, such as persons with disabilities, would be eligible for a 25% deduction. The annual maximum deduction is set at 200,000 won.

Lee pointed out, "99.7% of the entire population uses the internet, and even when looking only at mobile, 93.8% are users," adding, "Nevertheless, the current tax law regards telecommunications services as 'discretionary consumption,' which is out of step with the times." He emphasized, "We now live in an era where it is impossible to maintain daily life without telecommunications means such as the internet."

If the bill passes, it could serve as an institutional foundation for realizing digital welfare. In particular, as all areas, including digital education and cultural and leisure activities, are being reorganized around platforms, this bill is expected to provide an opportunity to improve the current structure in which individuals bear the full cost of information access.

Lee stated, "Taxes should be a tool to support people's lives," expressing hope that "this amendment will achieve both the restoration of tax justice and the prevention of exclusion during the digital transition period."