Finance minister Choo Kyung-ho said on Thursday that the government is not considering slapping a so-called “windfall tax” on energy firms.

The minister made the remarks to reporters at the government complex in Sejong City. 

A windfall tax is a higher tax levied by governments against certain industries when they experience significantly above-average profits. 

The finance minister's remarks came after main opposition Democratic Party chair Lee Jae-myung called for imposing a windfall tax on oil refiners that saw excessive profits.

Voicing clear opposition to the tax, Minister Choo said while some European countries are seeking to impose the windfall tax against oil refiners, local refiners have different business structures compared to their European counterparts.

He pointed out that European oil refiners develop and generate profit from oil fields, while local refiners make profits from imported oil.

The minister said that the government is not considering compiling a supplementary budget either.