기업소득 환류세제가 투자, 배당 그리고 임금증가에 미치는 영향

[Purpose] The government implemented regulations concerning Corporate Earnings Circulation Taxes(CECT hereafter). Through this, the government wants to increase the domestic economy by increasing investment and increasing household income. The CECT is imposed to the internal reserve which remained in the corporate and not been consumed as investment, then wags increased, or dividend. There is controversy with the CECT that is clear that the double taxation the government imposes on CECT firms which already paid corporate taxes is unfair. Also, if the CECT implementation increases dividends instead of investment and wage increases, Only foreign shareholders and major shareholders can increase profits. [Methodology] In this regard, this study analyzed the introduction effects of CECT. This study examines firms which were listed on the KOSPI in 2013 and 2019. [Findings] The results of this study are as follows: After the implementation of CECT, Firms’ sum of dividend, investment and wage growth were lower than before. In particular, Firms that tax the CECT have significantly reduced their investment compared to that avoiding CECT. [Implications] As a result of this study, the effectiveness of CECT was very low. Above all, the main purpose of the government’s introduction of CECT was to increase household income, but no wage increase was made. This confirmed that the government’s biggest goal was not achieved.