The Korea Management Federation , representing major conglomerates and business leaders, has publicly urged the government to establish clear, predictable tax standards in a January 20, 2026, policy statement. The federation criticized recent tax policy changes including hikes in corporate tax rates, capital gains levies, and employer-side social insurance contributions as creating uncertainty that deters investment and undermines long-term business planning.
KMF Chairman Lee Jae-yong Samsung Electronics stated: “Businesses need transparent and stable tax rules to make confident decisions on capital expenditure, hiring, and R&D. Frequent, retroactive, or ambiguous changes erode competitiveness and drive companies to relocate operations overseas.” The federation specifically called for:
The Ministry of Economy and Finance responded cautiously, noting ongoing consultations with business and labor but emphasizing the need to balance fiscal health with fairness. The KMF’s demand has reignited debate over tax policy direction ahead of the 2026 budget deliberations and local elections.
Korea Zinc Smelter to Supply 20% of US Strategic Minerals 
Galaxy Corporation hits ₩1 trillion valuation new era for enter-tech in Korea 
Kolmar Korea Chosen for Government’s AI Factory Project 
Kim Jong Un Hails 80 Years of North Korea’s Ruling Party 
Is Kim Ju-Ae Becoming North Korea’s Next Leader 
American billionaires pay lower tax rate than rest of population