S. Korea expects removal from EU tax haven blacklist as it vows to fix tax codes

SEOUL, Jan. 16 (Yonhap) -- South Korea is expected to be taken off the European Union's tax haven blacklist when the finance ministers of its member countries discuss the matter next week, Seoul officials said Tuesday.

Finance ministers of EU member states will hold a meeting in Brussels on Jan. 23 to discuss the possible delisting of South Korea and other jurisdictions that were listed as tax havens in December.

The EU named 17 non-cooperative tax jurisdictions on the blacklist, including Macau, the Marshall Islands and the United Arab Emirates (UAE). It claimed South Korea has "harmful preferential tax regimes" and had not committed to amending or abolishing them by Dec. 31, 2018.

"We vow to fix the tax codes cited by the EU within this year, a promise that will likely lead to our removal from the list," a government official said on condition of anonymity.

"The removal will be discussed through working-level meetings, and the finance ministers' meeting scheduled for next week will just be the occasion where it will be announced," he added.

The move, however, does not mean that South Korea will be removed from the list altogether since it will stay on the "gray list" until it makes good on its promise, he noted.

South Korea's inclusion on the list does not come with sanctions, but some fear it hurts the reputation of Asia's fourth-largest economy.

It is said that relevant government agencies are currently working on addressing the issue. Finance Minister Kim Dong-yeon earlier said that he will push for South Korea's removal from the blacklist before the end of January.

Earlier, Reuters reported that EU officials recommended the removal of eight jurisdictions from the blacklist, including South Korea, adding that the matter will be discussed at a meeting of EU ambassadors Wednesday and will likely be adopted by its finance ministers in Brussels next week.

kokobj@yna.co.kr
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