`3 big anti-corporate policy` to order corporations to pay additional KRW 36.5 trillion
[ Kwon Dae Gyung kwon213@ ] | 2017-12-11 10:19:30
Minimum wage increases, and shorter working hours once so-called `anti-corporate policies`, such as corporate income tax hikes, are to be implemented next year and companies should pay an additional KRW 36.5 trillion accordingly. Immediately next year, corporate tax burden will rise to 24.2 trillion won due to corporate tax and minimum wage increase. If the bill for reducing working hours is also taken, corporate burden will rise to the ceiling.
While Moon Jae-in will is accelerating the industrial competitiveness and improvement of the constitution both inside and outside the country, it is increasingly said that companies are pushing the astronomical burden on the welfare expansion and the reason for the rich.
According to the Digital Times on December 10, corporations are expected to have to pay additional costs next year when the corporate tax, the minimum wage increase, and the shortening of working hours are being discussed. The result is up to 36.5 trillion won.
First, the tax burden of KRW 2.30 trillion will be increased due to the corporate tax increase. Recently, the National Assembly revised the tax bill to raise the corporate tax rate from 22% to 25% and raise the tax rate to over 300 billion won. As a result, the tax burden to be paid by the 77 companies that receive the highest tax rate is KRW 2.3 trillion.
The minimum wage increase is much worse than the corporate income tax increase. As the minimum wage next year is set at KRW 7,530, which is 16.4% higher than this year, additional labor costs to be borne by companies are estimated at KRW 17 trillion. This is calculated by the Korea Federation of Small and Medium Businesses, adding an estimated estimate of KRW 15.2 trillion to the KRW 1.75 trillion increase in labor costs for foreign workers. Besides, when the normal wage and bonus are combined, the burden will increase to KRW 21.9 trillion.
The corporate tax and the minimum wage increase will have a total of KRW 24.2 trillion. However, it is the business sector`s point of view that this is only a surface figure.
In this case, it is calculated that the burden of tens of trillion won will be added if the irregular workers of 600,000 to 700,000 are converted into regular workers.
The controversial reduction of working hours is also a burden on the part of the company. According to the Korea Economic Research Institute, when the original bill is cut from 68 hours a week to 52 hours a week and it is estimated that the additional burden of the enterprise will reach KRW 12.3 trillion. The problem is that large companies are preparing for some shortening of working hours, while SMEs are not. If actual working hours are to be shortened, SMEs will have to pay an additional KRW 8.6 trillion more than the burden on large corporations. In fact, Samsung Electronics has been working for 40 hours since August, and has notified executives when overtime is over 12 hours, and SK Hynix and others have introduced 3-4 working shifts. Shinsegae Group, in August, revealed the introduction of a 35-hour work week, less than 40 hours of legal working hours, starting next year.
There is a growing concern that job cuts, investment scarcity, and economic recovery may take hold as the so-called three-way anti-corporate policies are expanded. Yang Jun-mo, a professor of economics at Yonsei University, warned that "raising the minimum wage and shortening working hours will lead to serious damage not only to large companies but also to food, hospitality and small self-employed businesses," he said. . Cho Kyung-yeop, director of the Economic Research Division of the Korea Economic Institute, said, "The increase in costs for both companies and industries can offset the effects of income-led growth." Jobs are getting smaller and corporate competitiveness may weaken. "
Sejong= By Kwon Dae GyungㆍHwang Byung Seo kwon213@
[ copyright ⓒ The Digitaltimes ]
While Moon Jae-in will is accelerating the industrial competitiveness and improvement of the constitution both inside and outside the country, it is increasingly said that companies are pushing the astronomical burden on the welfare expansion and the reason for the rich.
According to the Digital Times on December 10, corporations are expected to have to pay additional costs next year when the corporate tax, the minimum wage increase, and the shortening of working hours are being discussed. The result is up to 36.5 trillion won.
First, the tax burden of KRW 2.30 trillion will be increased due to the corporate tax increase. Recently, the National Assembly revised the tax bill to raise the corporate tax rate from 22% to 25% and raise the tax rate to over 300 billion won. As a result, the tax burden to be paid by the 77 companies that receive the highest tax rate is KRW 2.3 trillion.
The minimum wage increase is much worse than the corporate income tax increase. As the minimum wage next year is set at KRW 7,530, which is 16.4% higher than this year, additional labor costs to be borne by companies are estimated at KRW 17 trillion. This is calculated by the Korea Federation of Small and Medium Businesses, adding an estimated estimate of KRW 15.2 trillion to the KRW 1.75 trillion increase in labor costs for foreign workers. Besides, when the normal wage and bonus are combined, the burden will increase to KRW 21.9 trillion.
The corporate tax and the minimum wage increase will have a total of KRW 24.2 trillion. However, it is the business sector`s point of view that this is only a surface figure.
In this case, it is calculated that the burden of tens of trillion won will be added if the irregular workers of 600,000 to 700,000 are converted into regular workers.
The controversial reduction of working hours is also a burden on the part of the company. According to the Korea Economic Research Institute, when the original bill is cut from 68 hours a week to 52 hours a week and it is estimated that the additional burden of the enterprise will reach KRW 12.3 trillion. The problem is that large companies are preparing for some shortening of working hours, while SMEs are not. If actual working hours are to be shortened, SMEs will have to pay an additional KRW 8.6 trillion more than the burden on large corporations. In fact, Samsung Electronics has been working for 40 hours since August, and has notified executives when overtime is over 12 hours, and SK Hynix and others have introduced 3-4 working shifts. Shinsegae Group, in August, revealed the introduction of a 35-hour work week, less than 40 hours of legal working hours, starting next year.
There is a growing concern that job cuts, investment scarcity, and economic recovery may take hold as the so-called three-way anti-corporate policies are expanded. Yang Jun-mo, a professor of economics at Yonsei University, warned that "raising the minimum wage and shortening working hours will lead to serious damage not only to large companies but also to food, hospitality and small self-employed businesses," he said. . Cho Kyung-yeop, director of the Economic Research Division of the Korea Economic Institute, said, "The increase in costs for both companies and industries can offset the effects of income-led growth." Jobs are getting smaller and corporate competitiveness may weaken. "
Sejong= By Kwon Dae GyungㆍHwang Byung Seo kwon213@