Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
US firms to make donations to Korean victims of Japan's forced labor
Deputy Prime Minister and Finance Minister Choo Kyung-ho, left, and American Chamber of Commerce in Korea (AMCHAM) Chairman James Kim pose during a special luncheon at Grand InterContinental Seoul Parnas, Wednesday. Courtesy of AMCHAM
By Park Jae-hyuk
Finance minister vows to pursue deregulation for foreign companies in Korea
By Park Jae-hyuk
The American Chamber of Commerce in Korea (AMCHAM) said Wednesday that it will make a donation to the Foundation for Victims of Forced Mobilization by Imperial Japan.
The decision was made to support the Korean government's announcement earlier this week that Korean victims of Japan's forced labor during World War II will be compensated through a fund created by Korean companies, without the direct involvement of responsible Japanese firms.
The lobby group for U.S. firms operating in Korea added that it will also encourage its member companies to support the initiative.
“I would like to take this opportunity to welcome the historic agreement announced by the Korean and Japanese governments concerning the conclusion of discussions on sensitive historical issues,” AMCHAM Chairman James Kim said. “As President Biden and Secretary of State Blinken have stated in their remarks, the trilateral partnership between the U.S., Korea and Japan is critical to the peace and prosperity of the region.”
The AMCHAM chairman made the remarks during his meeting with Deputy Prime Minister and Finance Minister Choo Kyung-ho, on the day the Korean and the U.S. governments announced that the leaders of both countries will have a summit in Washington, D.C., on April 26.
During the meeting, the AMCHAM chairman especially expressed the gratitude of U.S. firms toward the Korean government's decision to allow foreign workers to pay their income tax at the rate of 19 percent for 20 years, instead of the previous five years. A regular income tax rate in Korea ranges from 6 percent to 45 percent, depending on each individual's earnings.
“The recent tax reform, including the 20-year flat tax rate for foreign workers, is a testament to his leadership in championing important economic reforms in Korea, which foreigners and companies who hire them are extremely pleased with,” Kim said.
In response, Choo promised that the Korean government will accelerate efforts to abolish regulations that do not meet global standards, so that foreign companies can increase their investments in this country.
“The governments of both countries will maintain mutually beneficial relations,” the finance minister said. “Regarding sensitive issues, such as the Inflation Reduction Act and the CHIPS Act, we will seek solutions for mutually beneficial and future-oriented growth for both countries.”