Lee Jae-myung Government Pulls Out the Tax Bill Before the FeastThe Dual Act of Populism and Taxation: The Dual Act

Livelihood Vouchers Rollout: The Dual Act

The Dual Act: The Lee Jae-myung administration will distribute “Livelihood Recovery Vouchers” worth KRW 150,000 to 550,000 per person in two phases: July 21–September 12 and September 22–October 31. Allocations vary by income, region, and demographic group, with a total budget of KRW 13.9 trillion. Vouchers—issued as local gift certificates—aim to directly boost sales at neighborhood shops and small businesses. While intended to stimulate consumer sentiment and domestic demand, critics argue it’s paired with tax hikes, illustrating “no free lunch.” Observers will watch whether this massive fiscal stimulus yields sustainable growth beyond a temporary boost. 신사동 빌딩 매매

Corporate Tax Hike Plans

The ruling party plans to restore the top corporate tax rate from 24% back to 25% in the September session of the National Assembly. Following the “wealthy tax cuts” under the Yoon administration, corporate tax revenues plunged 40% from KRW 100 trillion in 2022 to KRW 60 trillion in 2024. This measure seeks to fill the revenue gap. However, South Korean firms already face heightened burdens amid U.S. tariff threats. Further tax hikes risk stifling investment and exacerbating unemployment. Companies instead call for deregulation rather than more taxation.

Property Holding Tax Reform

A government task force is considering raising property holding tax rates by price bracket: 1% for homes up to KRW 1 billion, 1.2% for KRW 1–3 billion, and 1.5% above KRW 3 billion. The plan aims to curb the “one prized home” phenomenon by imposing heavier taxes on multiple-home owners and high-value residences. Critics warn that merely hiking taxes without addressing housing shortages could prolong market volatility. Analysts recommend a package of measures—tax reform alongside increased housing supply and eased financing—to stabilize real estate markets. local community