Suwon Mayor Lee Jae-jun Proposes to Ministry of the Interior and Safety: "Mitigation of Acquisition Tax Surtax on Overpopulation Restriction Zones"

[Suwon Ilbo=Reporter Jung Jun-seong] Suwon Metropolitan City Mayor Lee Jae-jun met with Vice Minister Ko Ki-dong of the Ministry of the Interior and Safety and proposed, "Please provide support so that the acquisition tax surtax imposed on corporations in overpopulation restriction zones can be mitigated."

On the 25th, Mayor Lee held a meeting with Vice Minister Ko in a conference room within the National Assembly Communication Center and stated, "When the revised local tax law bill is voted on in the National Assembly and transmitted to the government, we hope you will actively support its smooth passage," and requested, "Ultimately, please actively review the abolishment of surtax on corporations in overpopulation restriction zones."

The local tax law amendment bill regarding "surtax on acquisition within overpopulation restriction zones," which was sponsored by National Assembly Member Kim Young-jin (Suwon District B) and referred to the National Assembly's Committee on Administration and Safety on the 8th, includes a clause stating that "when enterprises undertake new construction or expansion within overpopulation restriction zones, a surtax rate equal to two times the surtax base rate (2%) added to the rates under Articles 11 and 12 of the Local Tax Law shall be applied only to the portion exceeding the total floor area of existing buildings and factories."

If the amendment is passed, when existing corporations within overpopulation restriction zones make new investments to expand their businesses within the zone, they will only have to pay increased acquisition and registration taxes on the expansion portion, not on the entire business.

Mayor Lee also stated, "Due to factors such as a decrease in Samsung Electronics' operating profit, we anticipate that tax revenues will decline by approximately 200 billion won in 2024," and proposed, "When calculating the standard financial revenue for 2024, please increase the general transfer tax by reflecting the decrease in local income tax revenues."

He also proposed "improvement of the organizational system for general districts of metropolitan cities" and "direct allocation of 2024 long-term education personnel."

Mayor Lee stated, "Please improve the organizational system for general districts of metropolitan cities so that the number of managers assisting ward chiefs can be increased." He then requested, "For metropolitan cities, the Ministry of the Interior and Safety should allocate long-term education (grade 4·5) personnel without going through the province." The requested personnel include 2 senior leaders (grade 4) and 1 mid-level leader (grade 5).

Vice Minister Ko stated, "I am aware of the matters you have proposed," and said, "I will carefully review the contents of your proposals."