The South Korean government has finalized plans to revise the country's tax code, with an aim to implement the changes next year.
Hopes are high that the adjustment will help create jobs and address wealth distribution issues.
Kim Ji-yeon with the details.
The Ministry of Strategy and Finance laid out plans Monday to revise the country's tax code.
It identified three main goals for the revision -- to make taxation fairer, to boost innovative growth and job creation, and to support those in the low-income bracket.
To improve income distribution and narrow the gap between the rich and poor, the ministry says it'll expand the number of beneficiaries of the earned income tax credit scheme, which refunds taxes to low-income families.
It'll expand eligibility for the credit from the current lower 50-percent of income earners... to the bottom 70-percent.
It also says it'll expand payments to low-income households raising children.
The amount provided will be raised from the current maximum of 447 U.S. dollars a month per child to 625 dollars.
Also, reporting of offshore property investments will be tightened to prevent tax evasion.
For innovative growth, the ministry says it'll provide corporate and income tax breaks for up to three years to companies that invest or open businesses in regions hit hard by corporate restructuring.
It also says it'll extend tax benefits for research-and-development in new technologies such as blockchain and quantum computing... and for companies that hire young people aged 15 to 34.
To promote eco-friendly energy usage, the ministry says it'll raise taxes on entities that rely on coal.
At the same time, it'll lessen the burden for those using more expensive liquefied natural gas.
The ministry also says it'll improve tax incentives for duty-free related businesses,... scrap a corporate income tax break for foreign investment, and cut the penalty on delayed tax payments.
Kim Ji-yeon, Arirang News.