Prime Minister Lee Nak-yon has expressed caution about the possible introduction of the so-called wealth tax, saying many factors need to be taken into account.
While speaking about the government’s plans in the economic field at a parliamentary interpellation session on Thursday, Lee was asked by Representative You Seung-hee of the ruling Democratic Party about proposals by some U.S. presidential candidates to impose a tax on wealthy people.
Lee said some countries introduced a wealth tax while others didn’t, indicating its implementation was determined depending on each country’s situation.
As for South Korea, Lee said the government raised the maximum income tax rate by two percentage points to 42 percent less than two years ago and as a result needs more discussions on the matter.
In regards to income disparity, the prime minister said those aged 70 or higher make up nearly half of the bottom 20 percent of earners and fixing the problem that has been worsened by the rapidly aging population will be a serious policy challenge for the country.