The government and the ruling Democratic Party have decided to restore the maximum corporate tax rate to 25 percent, reversing the Yoon Suk Yeol administration’s one percentage point cut.

Speaking to reporters after the bilateral meeting Tuesday, Rep. Jung Tae-ho, the party’s senior member on the parliamentary Strategy and Finance Committee, said corporate tax cuts are not directly linked to investment and the government is seeking to normalize taxation.

He said the government is also planning to redefine a major shareholder when calculating the transfer income tax on sales of listed shares, bringing the criterion back down from five billion won, or around three-point-six million U.S. dollars, per stock item to one billion won.

The lawmaker said the adjustments are expected to increase tax revenue by around seven-point-five trillion won, although the specifics will be determined by a review committee under the finance ministry.

On the subject of separate taxation of dividend income for high-dividend companies, Jung said opinion is divided, with some calling it a necessity to vitalize the stock and capital markets while others consider it a tax cut for the rich.