Seoul: Finance Minister nominee Lee Hyoung-il announced on Sunday that he is not considering a corporate tax cut, emphasizing the importance of maintaining the current corporate tax rate, which was restored at the beginning of this year.

According to Yonhap News Agency, Lee made these comments in response to a query from a ruling party lawmaker prior to his confirmation hearing scheduled at the National Assembly on Tuesday. The previous administration under Yoon Suk Yeol had reduced the top corporate tax rate from 25 percent to 24 percent in 2022. However, the subsequent Lee Jae Myung administration reinstated the original rate starting this year.

Lee explained that the government's decision to restore the corporate tax rate by 1 percentage point was aimed at normalizing the corporate tax burden and fostering a beneficial cycle between economic growth and tax revenue. The resources generated from this tax normalization are intended to support corporate competitiveness.

When questioned about the possibility of further differentiating corporate and other tax rates to benefit companies outside the capital area, Lee cautioned that such a move would require careful consideration of tax equality and its potential impact on the country's fiscal health.

Regarding the potential adoption of an income tax on financial investments and other capital gains, Lee suggested that any review should occur once market conditions have stabilized sufficiently. He expressed his intention to overhaul relevant systems to address industrial shifts and to create fair and efficient financial and taxation frameworks.

Lee also indicated that imposing taxes on virtual assets could enhance tax fairness, aligning with existing transfer and trade taxes on stocks.