Finance Minister-nominee Yoo Il-ho says the nation needs to reduce tax exemptions.

The nominee made the remarks on Monday during his confirmation hearing at the parliament, saying that he agreed on the need to reduce the number of people exempt from paying earned income tax.

Yoo said that if the number of people eligible for tax exemptions are reduced among low-income people, high-income earners will have to pay more tax under the progressive tax system.

The ratio of people exempt from paying earned income tax gradually increased from 32 percent in 2013 to 48 percent last year.

The nominee said that he has no plans to raise liquor taxes.