Will corporate tax hikes dent Korea’s competitiveness?

The programme of tax hikes and spending increases passed today by South Korea’s parliament is unlikely to have much impact on the country’s growth prospects. The budget is forecast to be fiscally neutral, so will not provide much of a boost to short-term growth. Meanwhile, the corporate tax hikes will affect so few companies that it is doubtful that they will do much damage to the country’s competitiveness.