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More Cash Incentives Promised for Foreign Investors

More Cash Incentives Promised for Foreign Investors

 

By Yoon Ja-young
Staff Reporter

 

Foreigners who plan to invest in the country will get more cash support from the government starting next year.
 
The Ministry of Knowledge Economy said Sunday that it is considering measures to increase incentives on inbound foreign investment.
 
Currently, the country provides around 15 billion won cash support for foreign investment annually. It is considering expanding this support by two to three times.
 
While the country's businesses have increased investment overseas in search of lower labor costs and new markets, inbound investment by foreigners has remained stagnant over the past few years. Hence, the government has been seeking ways to attract more investment here, as countries around the world come up with various incentives and reforms.
 
The ministry also plans to set up FIZs specializing in services industries in September. The government has been paying attention to the services sector over the past few years, which is increasing its stake in terms of employment.
 
According to Statistics Korea, 70.8 percent of those employed here were working in the services sector as of January. The sector provided jobs to only 50.6 percent of workers in 1992, but the ratio has been surging.
 
However, it has remained relatively uncompetitive compared with the country's strong manufacturing sector.
 
The idea of creating FIZs for services came as 66 percent of foreign direct investment in the country is made in this sector. They are likely to be set up in metropolitan areas such as Seoul, Busan and Daejeon.
 
The government is also pondering over ways to improve living conditions for foreigners, as families residing in the country often complain of poor access to medical services or good schools for their children.
 

 


Source : The Korea Times (April 25, 2010)