Korea to meet EU ambassador to discuss tax haven black list

The Korean government has decided to meet with the European Union’s ambassador to Korea soon in order to solve the problem as to the European Union’s adoption of Korea on a blacklist of 17 jurisdictions deemed as tax havens on Tuesday.

“We are planning to invite the EU ambassador next week and discuss it," Deputy Prime Minister and the Minister of Strategy and Finance Kim Dong-yeon told reporters Friday. "We will be able to resolve this issue soon through a director in charge for the ministry who is in Brussels, Belgium where the EU Commission's headquarters are located.”

The European Union has put Korea on a tax haven blacklist for its corporate tax exemptions to foreign investments. “We also have a series of issues to be raised at the EU,” Minister Kim said. “We are expecting to reach a resolution soon as negotiation is already undergoing.”

In the meantime, there is a concern that the current controversy would inevitably lead to a damage of the nation’s reputation as Korea is the only country considered a global player on the blacklist. Among 17 countries that European Union put on the blacklist, Korea tops all rankings of population (51.2 million), purchasing power parity (PPP) and gross domestic product (1.934 trillion dollars).

Jae-Myung Park jmpark@donga.com