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Korea Herald
21 hours ago
- Business
- Korea Herald
[Editorial] Corporate anxiety
DP pushing 'Yellow Envelope Law'; Corporate tax rates to be raised back Korean companies are concerned that the Lee Jae Myung administration and the ruling Democratic Party of Korea are stepping up legislation that could add to their burdens, following the revision of the Commercial Act. The revised Commercial Act proposed by the party passed the National Assembly on July 3. The revision expands the fiduciary duty of corporate board members to serve the interests not only of their companies but of shareholders as well. Business circles worry that the change could make directors avoid long-term investments because of shareholder objections. Last Friday, Democratic Party lawmakers presented a bill to revise the Labor Union Act — a proposal known as the "Yellow Envelope Law" — to the National Assembly's Environment and Labor Committee, then proceeded to forward it to the subcommittee for deliberation. The party, which has a large majority in parliament, vowed to get the bill passed in an extraordinary session of the Assembly next month. Article 2 of the Labor Union Act revision would require primary contractors to bargain collectively with the employees of subcontractors. Article 3 makes it practically impossible for companies to claim damages from workers taking industrial action. If hundreds or thousands of subcontractor employees were to demand collective bargaining, subcontractors and the large companies that outsource work to them could be mired in incessant labor disputes. The article limiting damage claims against workers could encourage more industrial action. For these reasons, former President Yoon Suk Yeol vetoed the bill twice. The deepening anxiety of companies is understandable. Koo Yun-cheol, the nominee for deputy prime minister and minister of economy and finance, mentioned the decline in corporate tax revenue during his confirmation hearing at the National Assembly last Thursday. He said he would consider restoring the higher corporate tax rates that the Yoon administration lowered. The Moon Jae-in government raised corporate tax rates to a range of 10-25 percent, then the Yoon administration eased them by 1 percentage point to 9-24 percent. Koo blamed the tax cuts for a decrease in corporate tax revenue. He argued that the tax reductions failed to have the desired effects, such as increased investment and economic growth. Corporate tax revenue decreased from 103 trillion won ($74 billion) in 2022 to 80 trillion won in 2023 and 62 trillion won in 2024. Koo is mistaken. Corporate tax revenue did not shrink by 41 trillion won in two years because of tax rate reductions. The biggest factor was the deterioration of business performance, affected by an export slowdown and a semiconductor slump. Unless the economy improves, raising corporate tax rates will not guarantee an increase in tax revenue. Rather, it could reduce tax revenue by dampening corporate investment. If corporate tax revenue diminished because of a weaker economy, common sense says to help businesses attain better results by lowering tax rates. However, Koo says he would do the opposite. The US and European countries offer tax incentives to foster their strategic industries and attract foreign investments. It is questionable whether revising the tax code to increase tax collection can enhance companies' international competitiveness. In his meeting with Korean business leaders last month, President Lee promised to fully support their business activities. Last week, he had separate dinners with Hyundai Motor Group Executive Chairman Chung Eui-sun and LG Chairman Koo Kwang-mo to discuss trade issues. Lee emphasized cooperation between the government and their businesses. But the bill to amend the Labor Union Act is far from a show of support for companies. Lee's economic policy seems to be deviating from the pragmatism that he vowed to champion. If revising the Labor Union Act is inevitable, lawmakers may as well hold further discussions about whether to make it mandatory for primary contractors to bargain collectively with subcontractor employees.
New Straits Times
2 days ago
- Politics
- New Straits Times
South Korean president appoints special envoys to Canada, Malaysia
SEOUL: South Korean President Lee Jae Myung on Sunday appointed special envoys to Canada and Malaysia, his spokesperson said. According to Yonhap News Agency, the delegation to Canada will be headed by ruling Democratic Party (DP) representative Kim Byung-joo and include Maeng Sung-kyu and Kim Ju-young, presidential spokesperson Kang Yu-jung said in a written briefing. The team to Malaysia will be led by former Oceans Minister Kim Young-choon and include DP representatives Nam In-soon and Yun Kun-young, she said. The team to Canada will depart Tuesday and meet with key Canadian government officials to deliver the Lee administration's commitment to further developing the two countries' comprehensive strategic partnership with a focus on the security, defence and energy sectors. The envoys to Malaysia will depart the same day and deliver the government's wish to strengthen the bilateral strategic partnership established last year during meetings with Malaysian government and parliamentary officials. The Lee administration plans to send special envoys to 14 countries with the aim of explaining the new government's state philosophy and foreign policy. -- BERNAMA-YONHAP
Malaysian Reserve
2 days ago
- Business
- Malaysian Reserve
South Korean president appoints special envoys to Canada, Malaysia
SEOUL — South Korean President Lee Jae Myung (picture) on Sunday appointed special envoys to Canada and Malaysia, his spokesperson said. According to Yonhap News Agency, the delegation to Canada will be headed by ruling Democratic Party (DP) Rep. Kim Byung-joo and include Reps. Maeng Sung-kyu and Kim Ju-young, presidential spokesperson Kang Yu-jung said in a written briefing. The team to Malaysia will be led by former Oceans Minister Kim Young-choon and include DP Reps. Nam In-soon and Yun Kun-young, she said. The team to Canada will depart Tuesday and meet with key Canadian government officials to deliver the Lee administration's commitment to further developing the two countries' comprehensive strategic partnership with a focus on the security, defence and energy sectors. The envoys to Malaysia will depart the same day and deliver the government's wish to strengthen the bilateral strategic partnership established last year during meetings with Malaysian government and parliamentary officials. The Lee administration plans to send special envoys to 14 countries with the aim of explaining the new government's state philosophy and foreign policy. — BERNAMA-YONHAP
The Diplomat
4 days ago
- Politics
- The Diplomat
South Koreans Show Increasing Support for President Lee Jae-myung
According to the latest polls, South Korean President Lee Jae-myung's approval rating reached 64 percent. Following his victory in the snap presidential election on June 3, which was scheduled due to the impeachment of Yoon Suk-yeol, Lee's approval ratings have steadily increased. With Lee's strong support base among the general public, the ruling Democratic Party's approval rating has also increased. Meanwhile public approval of the main opposition People Power Party (PPP), the former party of Yoon, has gradually decreased. The latest poll showed that 46 percent of the public support the DP while only 19 percent support the PPP. Should the public keep supporting Lee and the DP at such a high rate, Lee's party will likely win a landslide victory in the local elections next year, like it did in 2018. Thanks to then-President Moon Jae-in's unprecedentedly high approval ratings, the DP won 14 seats of 17 metropolitan governor seats in the 2018 local elections. The PPP only secured two seats. It's fairly common for South Korean presidents to enjoy solid support from the public, reflected in positive approval ratings, during the early part of their single five-year term. However, Lee assumed office in unique circumstances, following Yoon's shocking attempt to control the country through martial law. The public thus far has shown positive reactions to Lee's attempts to restore the country's democratic system. The resurgent stock market following Lee's victory in the election has also led moderates who did not even vote for Lee to support him. The new president also succeeded in projecting an image of himself as a passionate and hardworking leader, winning over skeptics. Even some conservative observers have admitted that there is nothing they can criticize about Lee's statesmanship thus far. As the DP also controls the power in the National Assembly, the party has moved quickly to investigate not only the martial law declaration but other allegations of corruption under Yoon. Three different probes led by special counsels have been launched to look into misdeeds during the Yoon administration, and some of the PPP senior lawmakers' offices have been raided and searched. The PPP vehemently criticized these investigations while accusing the Lee government of politically suppressing it. However, the PPP's appeal has not gotten much traction with the public, as evidenced by the latest polls. The DP's leadership has clearly implied that it does not have to work with those who did not participate in the National Assembly vote to lift Yoon's martial law declaration on December 3. The majority of PPP lawmakers did not even head to the National Assembly to participate in the vote. Even after the DP lifted the martial law by itself, thanks to its majority in the National Assembly, the PPP impeded the DP and other parties' effort to impeach Yoon. In this context, some lawmakers in the DP and other liberal parties have already submitted a bill calling for disbanding the PPP over its role in cooperating with the 'insurrection' led by Yoon's martial law declaration.
Irish Daily Mirror
4 days ago
- Sport
- Irish Daily Mirror
Tom McKibbin 'p***ed off' not to make Portrush cut in The Open
Local favourite Tom McKibbin is likely to miss out on the weekend in Portrush by just one shot. Not surprisingly, the 22-year-old is unhappy not to make the cut for the first time in a major championship, although this was just his third one. McKibbin, who hails from Newtownabbey, had high hopes coming into the championship with the backing of the home support and with a lucrative start to his LIV career already banked. Getting his second round underway on 1-over par, McKibbin birdied the first to get off to a great start but a double bogey on 9 derailed him and dropped shots followed on 11 and 14. He did battle back with a birdie on 15, but he couldn't find another over his closing holes and a 73 is now expected to leave him just on the wrong side of the cut mark. "Not great," he remarked afterwards. "A little bit annoyed. Yeah, a little bit p***ed off. I think that's what's probably most annoying (to lose out by one shot). "This is probably the best I've played out of them all, just so many like stupid errors, just pins at the back of the green, hitting over the green. It's just where there's nothing really wrong with the shot. So I think that's what's a little bit frustrating. "The crowd supporting me the whole way round was amazing. The whole week was good, sort of positive. I thought I played all right, just a few sort of stupid mistakes that looking back, I wouldn't really hit different. The shot was fine, just sort of missed in the wrong spot or got the club slightly wrong. "Overall, I actually thought I played quite nicely, just a few silly mistakes. It's very hard obviously when you don't really play much links golf, and then you start playing it two days or three days before a tournament. Besides that, all good. I felt like I've been playing nicely." If he takes anything from the two rounds it is hitting those tee shots on the first. He was with Padraig Harrington in the first group out on Thursday. Along with Darren Clarke, McKibbin and Harrington will put the feet up to watch the weekend action. "I've hit two decent ones down there that I think now going forward," said McKibbin. "I don't think there will be many harder tee shots going forward from that. After that, nothing really too much." He only has three tournaments left on the LIV tour this season. "I'll give those all I have," he said, having already earned over €4m in prize money having decided to join the Saudi-backed tour rather than the PGA Tour. "I'll play a little bit of DP as well coming towards the end of the year as well. Gearing up for them." Get the latest sports headlines straight to your inbox by signing up for free email alerts.
