South Korea to Revamp Tax Exemptions, Ending Marriage and Birth Tax Deductions
The South Korean government plans to overhaul 115 out of 241 tax expenditures. The initiative aims to replace tax deductions for marriage and childbirth with financial support, while also terminating ineffective programs. The government anticipates that this reform will generate approximately 2.5 trillion won in additional revenue.According to the '2026 Tax Reform Plan' announced by the Ministry of Finance on August 3, the government will revise 115 of the 241 tax expenditures. This includes end
Jin Jong-o Calls for Ethics Chair to Address Allegations of Confidentiality Breach
Jin Jong-o, a member of the People Power Party, urged Yoon Min-woo, the chair of the Central Ethics Committee, on August 3 to directly address allegations of leaking disciplinary materials and to restore procedural fairness.In a post on his Facebook, Jin stated, "It is now time for the public to judge the true nature of the ethics chair." He criticized the initiation of his disciplinary process, noting that it began with a meeting attended by only three of the five committee members, including Y
Joint Chiefs of Staff: U.S. Drone Incident Due to Communication Error
The Joint Chiefs of Staff announced that the recent U.S. drone incident was caused by a communication error among personnel regarding airspace control procedures. According to the investigation, a U.S. military staff member notified the Army's 1st Corps of the flight plan via text message just a day before the training exercise. The staff member failed to relay this information to superiors, leading to the confusion. The military stated that it would enhance communication systems between the two
K-Beauty Aesthetics Expands Global Business with Direct Sales and Distribution Networks
Domestic medical aesthetics companies are accelerating their efforts to penetrate overseas markets. Building on the growing demand for K-aesthetics, they are establishing direct sales systems in the U.S. and securing local distribution networks, moving beyond simple exports to strengthen their global business foundations.According to Shinhan Investment Corp. on August 3, the global medical aesthetics market is expected to grow from $25.9 billion in 2024 to $46.3 billion by 2030. As interest in n
Kim Yong-beom Faces Criminal Complaint Over Leverage ETF Directive
Kim Yong-beom, the chief policy officer at the Blue House, has been criminally accused in connection with the single-stock leverage exchange-traded funds (ETFs) that have been cited as a cause of rapid stock market fluctuations. On August 3, former Seoul City Councilor Lee Jong-bae (People Power Party) announced that he filed a complaint against Kim with the Supreme Prosecutors' Office for abuse of power, coercion under criminal law, and obstruction of business through intimidation. Lee claims t
Establishment of Defense Counterintelligence Agency Marks New Era
“The establishment of the Defense Counterintelligence Agency marks a turning point in ending the dark history of being a tool of power and completing the reconstruction of the 'military of the people.' You must prove yourselves as the 'people's counterintelligence agency' that the citizens can trust and rely on.” Ahn Gyu-baek, Minister of National Defense, made these remarks during the establishment ceremony of the Defense Counterintelligence Agency held at the headquarters in Gwacheon on August
Bank of Korea to Purchase Gold for First Time in 13 Years Amid Geopolitical Risks
The Bank of Korea is set to resume gold purchases, shifting its long-standing preference for stocks as geopolitical risks increase the demand for safe assets.On August 3, the central bank announced it has established a trading system to buy domestically produced gold in collaboration with local gold producers, the Korea Exchange (KRX), and the Korea Securities Depository (KSD). The purchases will be based on the international gold price for quantities intended for export.The process will involve
Deputy Minister Lee Hyung-il: Tax Reforms to Support Economic Growth
Deputy Minister of Economy and Finance Lee Hyung-il announced on August 3 that the government will support a major economic leap for South Korea through tax reforms aimed at fostering strategic industries such as artificial intelligence (AI) and semiconductors, while also focusing on the livelihoods of citizens and local support.The 59th Tax Development Advisory Committee convened in Seoul, where Lee noted that while the South Korean economy is experiencing growth momentum due to the AI and semi
2026 Tax Reform Plan: Local Investment Tax Credits Increased by 1.5 Times, Income Tax Exemption for Youth in Declining Areas Extended to 10 Years
Government plans to apply differential tax credits for research and development (R&D) and facility investments based on region. Higher credits will be offered in non-metropolitan areas compared to the capital region, and young workers employed by small businesses in areas experiencing population decline will see their income tax exemption period extended to a maximum of 10 years, encouraging the relocation of businesses and workforce to these regions.The Ministry of Finance announced the '2026 T
New Tax Credit for Domestic Production of Semiconductors and Key Technologies
The South Korean government will introduce a new 'domestic production tax credit' system to support the production of semiconductors, secondary batteries, and AI robot components, which are essential for economic security and supply chain stability. The plan aims to encourage domestic production and regional investment by offering higher tax credits in provinces compared to the capital region.On August 3, the Ministry of Economy and Finance announced the details of the '2026 Tax Reform Plan' dur