Adjustment of corporate income tax rates and bracket

• The top marginal tax rate would be lowered from 25% to 22%.

• Defined small and medium-sized enterprises (SMEs) and medium-scale companies (collectively “eligible SMEs”) would be eligible for the reduced tax rate at 10%, except for the following cases.

- A company carrying on consumption-oriented business (i.e., such as hotels, inns, etc.);

- A company whose (1) main business is the real estate rental business or more than 50% of sales consist of its real estate rental income, interest, or dividend income, and (2) controlling shareholder owns more than 50% of total shares in the company.

Current	Proposed
Tax base (KRW in millions) Tax rate * Up to 200 10% 200~20,000 20% 20,000~300,000 22% Above 300,000 25%	Tax base (KRW in millions) Tax rate* Up to 500 20% (10% only for eligible SMEs) 500~20,000 20% Above 20,000 22%
* Local (provincial) income tax is separately imposed at 10% on the corporate income tax liability.