Large corporations received 82% more in tax breaks last year than the previous year, while small and medium-sized enterprises saw only a 4% increase. According to data from the National Tax Service, the total amount of tax exemptions for large corporations was 4.3 trillion won in 2021, up from 2.36 trillion won in 2020. The number of large corporations receiving tax breaks also rose 11.6% to 1,548. In contrast, small and medium-sized enterprises received 1.64 trillion won in tax exemptions, up 4% from 1.58 trillion won the previous year. The number of small and medium-sized enterprises receiving tax breaks was 13,310, up 4.5% from 12,737. The data also showed that the total amount of tax exemptions for all businesses was 7.3 trillion won, up 23.3% from 5.92 trillion won in 2020. The number of businesses receiving tax breaks was 17,338, up 6.3% from 16,301. The tax exemptions were for various purposes, including 2.64 trillion won for research and development, 1.98 trillion won for facility investments, and 1.24 trillion won for environmental protection. The largest beneficiaries of tax breaks were in the manufacturing sector, with 3.42 trillion won in exemptions, followed by the IT sector with 1.24 trillion won. The government has been using tax breaks to encourage businesses to invest in areas such as research and development, facility investments, and environmental protection. However, some critics have argued that the tax breaks have mainly benefited large corporations, and that the government should do more to support small and medium-sized enterprises. The government has announced plans to review the effectiveness of the tax breaks and to consider adjustments to the system.
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