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Business lobby group opposes move to raise corporate taxes
By Kim Yon-sePublished : Aug. 23, 2012 - 20:32
KCCI tenders wish list to ruling and opposition parties ahead of presidential election
Four months ahead of the Dec. 19 presidential election, a major business lobby group submitted their wish list to political parties urging them not to raise corporate taxes.
In the recommendation letter handed over to ruling and opposition parties on Thursday, the Korea Chamber of Commerce & Industry said it hopes, above all, the next administration will not raise corporate taxes.
The KCCI claimed that the recent movement to hike corporate income taxes among lawmakers reverses a global trend, arguing that it would be linked to undermining enterprises’ competitiveness.
“Major countries are abstaining from raising corporate taxes. Apart from the issue of slashing taxes, our nation should follow suit and not raise taxes at least,” it said.
It also reiterated its stance opposing a group of lawmakers’ proposal to introduce new regulations on conglomerates.
“Enhancing regulations on the conglomerate sector could foster anti-business sentiment and weaken the economic growth potential,” it said. “The issue should be profoundly discussed with professors and research firms.”
In the labor sector, the biz lobby group called on the next administration to hold policy consistency.
Stressing that labor-management dispute is the main axis of the social conflict, the KCCI asked the next president to push for maintaining a variety of recent reforms, preventing illegitimate practices of labor unions.
In addition, it claimed the necessity of revitalizing inter-Korean businesses including the activation of the Gaeseong Industrial Complex in North Korea.
The lobby group also said it is necessary for the country to expand trade with more firms in the United States and the European Union under free trade agreements.
“To expand the economic territory, the next government should push ahead with more FTAs.”
While the KCCI called for efficient strategies in FTA negotiations with China, it said an FTA with Japan should be approached prudently.
“While diversifying export destinations (amid global uncertainties), inviting more foreign direct investment is also required,” it also said.
Ahead of the presidential election, opposition lawmakers, including those from the main opposition Democratic United Party, are gearing up for more drastic measures, such as the introduction of a ceiling on total equity investment, division of financial and industrial capital and conglomerate reform.
The ruling Saenuri Party also pledged “to promote economic democratization in order to realize a fair-competition economy that protects the market, small and mid-sized businesses and consumers from mammoth economic forces.”
Amid the political move, chiefs of the nation’s major conglomerates recently called on the government to put more efforts into revitalizing the economy through deregulations.
Seoul members of the Korea Chamber of Commerce and Industry shared the view that “the corporate sentiment has been worsening since the second half of 2010 and exports are in a decline.”
The participants including KCCI chairman Sohn Kyung-shik expressed worries over tough regulations on the business sector.
“We want the political sector to actively foster the environment which can help local enterprises secure global competitiveness,” a KCCI official said.
By Kim Yon-se (kys@heraldcorp.com)
Four months ahead of the Dec. 19 presidential election, a major business lobby group submitted their wish list to political parties urging them not to raise corporate taxes.
In the recommendation letter handed over to ruling and opposition parties on Thursday, the Korea Chamber of Commerce & Industry said it hopes, above all, the next administration will not raise corporate taxes.
The KCCI claimed that the recent movement to hike corporate income taxes among lawmakers reverses a global trend, arguing that it would be linked to undermining enterprises’ competitiveness.
“Major countries are abstaining from raising corporate taxes. Apart from the issue of slashing taxes, our nation should follow suit and not raise taxes at least,” it said.
It also reiterated its stance opposing a group of lawmakers’ proposal to introduce new regulations on conglomerates.
“Enhancing regulations on the conglomerate sector could foster anti-business sentiment and weaken the economic growth potential,” it said. “The issue should be profoundly discussed with professors and research firms.”
In the labor sector, the biz lobby group called on the next administration to hold policy consistency.
Stressing that labor-management dispute is the main axis of the social conflict, the KCCI asked the next president to push for maintaining a variety of recent reforms, preventing illegitimate practices of labor unions.
In addition, it claimed the necessity of revitalizing inter-Korean businesses including the activation of the Gaeseong Industrial Complex in North Korea.
The lobby group also said it is necessary for the country to expand trade with more firms in the United States and the European Union under free trade agreements.
“To expand the economic territory, the next government should push ahead with more FTAs.”
While the KCCI called for efficient strategies in FTA negotiations with China, it said an FTA with Japan should be approached prudently.
“While diversifying export destinations (amid global uncertainties), inviting more foreign direct investment is also required,” it also said.
Ahead of the presidential election, opposition lawmakers, including those from the main opposition Democratic United Party, are gearing up for more drastic measures, such as the introduction of a ceiling on total equity investment, division of financial and industrial capital and conglomerate reform.
The ruling Saenuri Party also pledged “to promote economic democratization in order to realize a fair-competition economy that protects the market, small and mid-sized businesses and consumers from mammoth economic forces.”
Amid the political move, chiefs of the nation’s major conglomerates recently called on the government to put more efforts into revitalizing the economy through deregulations.
Seoul members of the Korea Chamber of Commerce and Industry shared the view that “the corporate sentiment has been worsening since the second half of 2010 and exports are in a decline.”
The participants including KCCI chairman Sohn Kyung-shik expressed worries over tough regulations on the business sector.
“We want the political sector to actively foster the environment which can help local enterprises secure global competitiveness,” a KCCI official said.
By Kim Yon-se (kys@heraldcorp.com)
