South Korea set out new tax code revisions Thursday that chiefly target boosting household income and making companies spend more of their cash reserves to drive economic growth as the country pushes to increase domestic consumption to ward off deflation concerns.
The measures, to take effect starting Jan. 1, include giving a 10 percent tax credit to workers whose wages increased more than the average for the preceding three years. Companies that pay out high dividends will get lower withholding tax rates of 9 percent from the current 14 percent.