Assemblyman Kim Hoe-jae, Introduces the 'Universal Career Interruption Support Act Without Gender Distinction' as Lead Sponsor

Tax Support for Women Career Interruptions Shifts to Universal Support Including Men

Requirement for Tax Support on Career Interruptions Relaxed from Over 2 Years to Over 1 Year

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik] A legislative amendment is being promoted to allow career interrupters to receive tax support universally, regardless of gender.

On the 14th, Kim Hoe-jae, a member of the Democratic Party of Korea (Yeosu-si Eul, Jeonnam), announced that he had introduced the 「Partial Amendment to the Restriction of Special Taxation Act」 containing such content as the main proposer.

Rep. Kim pointed out that the current system cannot support men whose careers have been interrupted due to childcare, and explained that policy support should be provided to all career interrupters, including men.

The current law provides a tax credit equivalent to 30% of labor costs (15% for medium-sized enterprises) to small and medium-sized enterprises that employ career-interrupted women, and income tax reductions of up to 70% for career-interrupted women employed by small and medium-sized enterprises.

In addition, for the increase in the number of regular employees who are career-interrupted women, the employer's burden of social insurance premiums is deducted from income tax or corporate tax.

However, the current system limits tax support recipients to women career interrupters, making it difficult to support men whose careers have been interrupted.

This is why there are calls to prepare support measures for career-interrupted men, whose numbers are increasing as dual-income households become common.

Accordingly, Rep. Kim Hoe-jae's 「Partial Amendment to the Restriction of Special Taxation Act」 revises all tax support regulations applied to career-interrupted women to include male career interrupters as eligible for support.

The purpose is to transform tax support for career interrupters into universal support without gender distinction.

Rep. Kim's amendment also relaxes the period requirement for career interruption eligible for tax support from the current two years or more to one year or more, thereby expanding the support target.

Rep. Kim also expanded tax support for childcare leave takers.

The current law provides a tax credit of up to 30% of labor costs (15% for medium-sized enterprises) to small and medium-sized enterprises employing employees returning from childcare leave.

However, the current system limits the tax credit to one time per child and only applies when the employee returning from childcare leave has taken six months or more of childcare leave, which limits parents' ability to freely use the childcare leave system.

Therefore, Rep. Kim expanded support by allowing tax credits for labor costs when the employee returning from childcare leave has taken three months or more of childcare leave and deleting the provision that limits tax support to one time per child.

Rep. Kim said, "The unfortunate cases of career interruption due to childcare do not discriminate by gender," and added, "We will prepare institutional support measures so that no one in need of support due to career interruption is left out."

He continued, "Ultimately, work-family balance should be firmly established so that the term 'career interruption' itself becomes unnecessary," and added, "The political sphere must strengthen support policies for work-family balance with a responsible attitude."

The 「Partial Amendment to the Restriction of Special Taxation Act」, introduced by Rep. Kim Hoe-jae as the main proposer, was co-sponsored by Representatives Kang Deuk-gu, Kim Doo-kwan, Kim Young-joo, Moon Jung-bok, Park Young-soon, Park Joo-min, Song Ok-joo, Yang Hyang-ja, Yoon Gun-young, Yoon Kwan-seok, Yoon Jae-gap, Jung Il-young, and Joo Cheol-hyun.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

This content was produced with the assistance of AI translation services.