80 Trillion Won Investment

At the economic ministerial meeting in the Government Complex in Seoul on April 27, Deputy Prime Minister Yoo Il-ho said the government will invest 80 trillion won in the ICT convergence, culture and content industries
At the economic ministerial meeting in the Government Complex in Seoul on April 27, Deputy Prime Minister Yoo Il-ho said the government will invest 80 trillion won in the ICT convergence, culture and content industries

 

The South Korean government is planning to raise a fund of one trillion won in order to accelerate the growth of future industries and invest 80 trillion won in the ICT convergence, culture and content industries. It is to provide a corporate tax deduction of 30%, the highest level allowed by the current tax low, for future industries, too.

“We will restructure traditional main industries boldly and promptly and foster the growth of new industries at the same time so that the impact of the restructuring can be minimized during the course of the upcoming industrial reform,” Deputy Prime Minister Yoo Il-ho said at the economic ministerial meeting in Seoul on April 27, adding, “The government’s current plan for the promotion of future industries and corporate restructuring will be implemented in tandem with its previous one for the restructuring of the labor, public, financial and education sectors.”

A series of substantial tax, budget and financial incentives are to be provided for selected firms in future industries through a screening procedure scheduled to be completed in the first half of this year. IoT, energy, smart car and biotech companies are expected to form the largest part of the group of beneficiaries.

Half of the one trillion-won fund is to be raised by the government and the other half by the private sector. The purpose of the fund is to ease the burden of investors in high-risk high-return industries such as new drug development and artificial intelligence.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution