South Korea’s government and ruling Democratic Party (DP) announced Tuesday they will raise the top corporate tax rate from 24% to 25%, reversing a 2022 tax cut enacted under former President Yoon Suk-yeol. The increase restores the rate to its level under the Moon Jae-in administration, a move the ruling bloc says is part of a broader effort to rebalance fiscal policy.

In the same policy meeting, the two sides agreed to lower the capital gains tax threshold for major shareholders from $3.6 million (5 billion won) to $719,000 (1 billion won), again rolling back a Yoon-era adjustment. The revised