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Ruling DP to Encourage Companies' Voluntary Participation in Sharing Profits

Write: 2021-01-14 14:56:20

Thumbnail : YONHAP News

The ruling Democratic Party(DP) has decided to encourage voluntary participation in a system where businesses that benefited from the COVID-19 pandemic, mostly in the nontact sector, share their profits with those hardest hit by the crisis.

DP leader Lee Nak-yon said on Wednesday that the party and the government would support the system through tax breaks and other incentives.

Lee said if nontact businesses, like major portals and platform companies, work with smaller businesses to increase profits, they could share them by raising the percent margin for the smaller firms or reducing service fees.

The decision to encourage voluntary participation comes amid criticism from the main opposition People Power Party(PPP) that forcing companies to take part would be imposing illegal corporate taxes.

The minor Justice Party has questioned the effectiveness of the plan, calling for imposing additional taxes on corporations and high-income earners.

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