About 90% of five-year rise in corporate tax came from Seoul-area firms, data show
In short
Corporations headquartered in the Seoul metropolitan area bore 16.6475 trillion won, or 89.5%, of the 18.6 trillion won increase in corporate tax paid nationwide between 2020 and last year. The figures come from National Tax Service data obtained by Democratic Party lawmaker Jeong Tae-ho (정태호). Seoul alone accounted for 52.8% of total corporate tax paid last year.
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About 90% of the increase in corporate tax over the past five years was borne by corporations headquartered in the Seoul metropolitan area, according to figures reported on 22 October. The data were obtained from the National Tax Service by Jeong Tae-ho (정태호), a Democratic Party of Korea member of the National Assembly's Finance and Economic Planning Committee. [ 1 , 2 , 3 ]
Total corporate tax liability nationwide was 72.1714 trillion won last year, up 18.6 trillion won, or 34.7%, from 53.5714 trillion won in 2020. Corporations in the metropolitan area bore 16.6475 trillion won of that increase, or 89.5%. [ 1 , 2 , 3 ]
Tax liability of metropolitan-area corporations rose 41.7%, from 39.9585 trillion won in 2020 to 56.606 trillion won last year. Over the same period, tax liability of corporations outside the metropolitan area rose only 14.3%, from 13.6129 trillion won to 15.5654 trillion won. Chosun Ilbo and Maeil Business described the metropolitan increase as nearly three times larger than the non-metropolitan one. Yonhap said the metropolitan share of total tax rose from 74.6% in 2020 to 78.4% last year, a rise of 3.8 percentage points. [ 1 , 2 , 3 ]
The three outlets reported that Seoul stood out within the metropolitan area. Seoul had 316,350 corporations last year, 29.1% of the national total, but its total tax liability of 38.1036 trillion won was 52.8% of the national figure. [ 1 , 2 , 3 ]
Some regions outside the metropolitan area saw more filing corporations but less tax. Sejong had 46.5% more filing corporations than in 2020, but its total tax liability fell 2.5%. Gyeongbuk and Jeju had 22.1% and 22.2% more filing corporations, while their tax liability fell 3.2% and 3.5%. Yonhap added that Gwangju's number of filing corporations rose 21.9%, the same rate as Seoul's, but its tax liability was essentially unchanged, going from 831.1 billion won to 831.3 billion won, while Seoul's rose 39.6%. [ 1 , 2 ]
Yonhap quoted Jeong as saying the trend of the tax base concentrating in the metropolitan area should be examined closely. He said the results and direction of regional balanced development policy should be reviewed so that high-value-added companies, headquarters functions and the tax base can take real root in the regions. [ 1 ]
One passage in the Maeil Business text refers to the 72.1714 trillion won total as being for 2022, while its other passages describe it as last year's figure. [ 3 ]
Why it matters
The outlets present the figures as showing a concentration of the tax base in the capital region. Jeong Tae-ho said the trend should be examined closely and the results and direction of regional balanced development policy reviewed.
Key facts
- Total corporate tax liability nationwide was 72.1714 trillion won last year, up 18.6 trillion won (34.7%) from 53.5714 trillion won in 2020. [ 1 , 3 ]
- Corporations in the Seoul metropolitan area bore 16.6475 trillion won, or 89.5%, of that increase. [ 1 , 2 ]
- Tax liability of metropolitan-area corporations rose 41.7%, from 39.9585 trillion won to 56.606 trillion won, while non-metropolitan corporations rose 14.3%, from 13.6129 trillion won to 15.5654 trillion won. [ 1 , 2 , 3 ]
- The metropolitan area's share of total corporate tax was 78.4% last year. [ 1 , 2 , 3 ]
- Seoul had 316,350 corporations, 29.1% of the national total, but paid 38.1036 trillion won, or 52.8% of total corporate tax. [ 1 , 2 , 3 ]
- Sejong, Gyeongbuk and Jeju had more filing corporations than in 2020 but lower total tax liability. [ 1 , 2 ]
Confirmed by several sources
- The data, obtained from the National Tax Service by Democratic Party lawmaker Jeong Tae-ho, show that about 90% of the rise in corporate tax over five years was borne by corporations headquartered in the Seoul metropolitan area. [ 1 , 2 , 3 ]
- Metropolitan-area corporate tax grew 41.7% against 14.3% for non-metropolitan corporations. [ 1 , 2 , 3 ]
- Seoul corporations were 29.1% of the national total but accounted for 52.8% of corporate tax liability. [ 1 , 2 , 3 ]
- Sejong's filing corporations rose 46.5% from 2020 while its total tax liability fell 2.5%. [ 1 , 2 ]
Still unclear
- The year of the 72.1714 trillion won total. One passage in the Maeil Business text gives it as 2022, while the other passages and the other two outlets describe it as last year and compare it with 2020 or a five-year period.