Im Kwang-hyun, head of the National Tax Service, stated on July 12 that "sustainable finance depends not only on how much tax revenue is secured but also on how stable that structure is."
In a post on X (formerly Twitter) titled "Today's Tax Revenue, Tomorrow's Competitiveness," he emphasized the need to utilize the increased corporate tax revenue from the semiconductor boom for a future response fund.
He diagnosed Korea's tax revenue as having a 'concentration-type portfolio,' indicating a high dependence on specific industries and a few companies.
Im noted that while corporate tax revenue increases during semiconductor industry booms, a downturn in the semiconductor market leads to poor corporate performance and a subsequent decline in tax revenue.
He remarked, "This year, we are experiencing a supercycle in semiconductors, resulting in increased corporate tax revenue, which, along with a revitalized stock market, has sharply raised securities transaction taxes," underscoring the importance of sustainable finance and a stable structure.
To diversify the tax revenue portfolio, he stated that the core competitiveness of the semiconductor industry must be continuously nurtured as a super-gap industry, while also discovering future growth opportunities.
He emphasized the need to secure future growth engines and diversify the industrial structure to establish a balanced and stable tax revenue base.
Im described the plan to use additional tax revenue from the semiconductor boom to support three major mega projects as a necessary policy for strengthening the nation's long-term competitiveness, stating, "This will ensure both the sustainability of finances in preparation for increased welfare demands due to low birth rates and an aging population and tomorrow's competitiveness."
* This article has been translated by AI.
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