A new report is out on how the government's corporate tax hikes are putting great financial stress on local companies. <br />Ko Roonhee reports. <br />In 2017, the South Korean government increased its corporate tax rate to 25 percent from 22 percent for companies making net profits exceeding 263 million U.S. dollars a year.<br />This move was intended to create a wider tax revenue base and give smaller businesses a helping hand.<br />According to the Korea Economic Research Institute on Wednesday, the increase in corporate tax revenue was around 4-billion U.S. dollars last year,... more than double the government's projection.<br />The research was based on 517 KOSPI-listed non-financial companies... with the analysis focused on 38 of them subject to the government's tax hike to 25-percent.<br />The institute added... that the actual amount will be even larger...because its research was only centered on listed firms. <br />An expert says the higher corporate tax rate is hurting the economy. <br />"The burden of high corporate tax rates will negatively affect companies' investment and employment activities. Sluggish exports and low domestic demand just makes matters worse."<br />Then how can the tide be turned? <br />The institute suggests reducing the corporate tax rate like other countries,... including the United States.<br />If this measure is not feasible, the institute says various support measures such as providing other tax benefits could also be considered.<br />Ko Roon-hee, Arirang News. <br />
