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Economy

South Korea to hike corporate tax, bucking global trends

Samsung Electronics, Hyundai Motor could face 25% levy, up from 22%

Some experts are concerned that South Korea's corporate tax hike will impact investment and wages.   © Reuters

SEOUL -- The South Korean parliament is expected to pass Tuesday a bill to increase corporate taxes to 25% for the highest earning companies from next year, deviating from a global trend of corporate tax cuts.

Party leaders agreed to raise the corporate tax from 22% for big companies that make income of more than 300 billion won ($276 million). The Finance Ministry said that 77 companies, including Samsung Electronics, Hyundai Motor and SK Hynix, are expected to pay an additional 2.3 trillion won in 2018, if the new tax code becomes effective.

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