In a major shift from the previous administration‘s liberal agenda of an income-driven economy, the new government also vowed to minimize state intervention in the market. In addition, the plan includes a series of reforms, such as restructuring the national pension system.
Announcing the five-year plan, Deputy Prime Minister and Finance Minister Choo Kyung-ho and other ministers, said in a joint statement that the core of the Yoon administration’s economic policy is deregulation.
“(The administration) will ease a variety of regulations, which have restricted the freedom and creativity of the private sector,” read the statement.
The government will abstain from excessively intervening in the market, under which the economy would shift to one that emphasizes “the private sector, businesses and market-based activity,” said the statement.
To promote business investment and job creation, the administration plans to slash the corporate tax ceiling to 22 per cent of their earnings, from the current 25 per cent. It will also revise the taxation system to resolve double taxation on businesses at home and abroad.
In addition, the government will revise the inheritance tax law to help family-controlled corporations transition managerial power smoothly.
For the next five years, structural reform will take place in five sectors — fiscal affairs and pensions, labour, education, finance and services, according to the plan.