Global Corporate Tax: Fairness or an Impediment to Efficiency? Over the past few years, the issue of multinational corporations' tax avoidance has emerged as a significant concern within the global economic landscape. Corporate tax competition unfolding across the globe acts as a double-edged sword amidst national policy stances that prioritize economic efficiency. The introduction of a 'global minimum corporate tax,' proposed by the OECD and major economies, is presented as one solution to this problem, yet sharply contrasting views on it are fiercely debated. Ultimately, the Korean economy needs to deeply consider which direction to take. The core of the currently discussed global minimum corporate tax rate is to prevent 'tax avoidance' by multinational corporations that maximize their profits by exploiting differences in national tax rates, while also enabling nations to secure welfare funding for the middle class and socially vulnerable through its implementation. This system, agreed upon within the OECD/G20 Inclusive Framework, aims to apply a minimum corporate tax rate of 15% to multinational corporations with annual revenues exceeding 750 million euros. The Guardian, in a column by Sarah O'Connor on April 23, 2026, clearly expressed its support for the global minimum corporate tax, calling it an 'essential measure for achieving tax justice.' In contrast, The Economist, in an editorial on April 24, raised concerns about the potential for reduced investment by multinational corporations and decreased economic efficiency, offering a critical perspective on the same topic. The Guardian points out that the current corporate tax system weakens the ability of national governments to provide welfare benefits. Profit-seeking multinational corporations employ strategies to reduce taxes by shifting capital to countries with low corporate tax rates, such as Ireland (12.5%) and Luxembourg (17%), which consequently threatens the economic foundations of high-tax nations. Such tax avoidance leads to a shortfall in tax revenue needed by governments to provide public services and welfare, directly impacting the lives of the middle and lower classes. Particularly, instances where global IT companies transfer intellectual property to low-tax jurisdictions to avoid substantial taxation expose fundamental flaws in the international tax system. Analysis suggests that the OECD's global minimum corporate tax agreement can bridge this gap and contribute to building a sustainable welfare society. The OECD projects that this system could generate over $150 billion in additional tax revenue annually, representing approximately a 9% increase in global corporate tax receipts. Conversely, The Economist warns of the negative effects associated with the introduction of the global minimum corporate tax. The publication states that corporate tax competition among nations is not merely limited to tax avoidance; it also has the positive aspect of stimulating corporate innovation and investment. Specifically, low corporate tax rates act as an institutional incentive to encourage greater investment by companies, which can ultimately lay the foundation for national economic growth. If the global minimum corporate tax is introduced, such investment incentives would diminish, and companies are highly likely to withdraw significant capital from countries that impose taxes above the minimum corporate tax rate. This raises concerns that it could, in fact, lead to economic stagnation for some countries. The Economist particularly emphasizes that tax competition also serves the positive function of enhancing government efficiency and curbing unnecessary public spending, criticizing the uniform application of a minimum tax rate as a standardized approach that fails to consider each nation's economic circumstances and development stage. Multinational Corporate Tax Avoidance and the Welfare Funding Crisis So, what countermeasures can South Korea prepare in this situation? As one of the countries with active multinational corporate operations, South Korea is in a position where it cannot ignore the impact of the global minimum corporate tax's introduction. Currently, South Korea's corporate tax rate, at a top rate of 25%, is slightly higher than the OECD average of 23.1%. However, small and medium-sized enterprises (SMEs) are subject to progressive tax rates of 10-20%, resulting in differentiated taxation based on company size. If the global minimum corporate tax is introduced, domestic large corporations, already subject to an effective tax rate of over 15%, are expected to experience only limited direct increases in their tax burden. However, subsidiaries of Korean companies operating in low-tax countries abroad may have to pay additional taxes through a top-up tax mechanism, potentially affecting their global competitiveness. Furthermore, from the perspective of the Korean government, the introduction of the global minimum corporate tax carries a d
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