tax credits

tax credits

Korea eyes new industries for future growth

3d ago
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[산업개혁] 신산업 R&D 투자 30% 세액공제, 1조원 펀드 조성 투자 확대 Korea is bracing for a wave of tough reforms... that include fostering new industries and stripping away the excess capacity in old ones. Hwang Ji-hye lists out parts of the long-term plans for us. The Korean government is gearing up to overhaul its industrial sector, emphasizing *longer-term measures over *short-term solutions to rev up the economy. During an economy-related ministers' meeting on Thursday,... the government pledged to drastically improve its support for investments in new industries. "We will grant up to 30 percent in tax credits,... the highest level,... to research and development investments in new industries and a ten-percent tax credit for facilities investments, if the money is put toward commercializing new technology. R&D 30% , 10% ...) While the decision on exactly which sectors will be targeted... will be made within the first half of this year,... It is likely to involve the Internet of Things, new energy projects and smart cars. The government is also set to offer greater tax credits in other service-related industries as well, like the cultural content sector,... and plans to support high-risk new industries through a fund worth around one trillion won,... or roughly 870-million U.S. dollars. But some experts say... these measures are more supplementary than fundamental. "The government has drawn up a financial and taxation support package, but the question is whether this is enough to draw out good players in the market. Will these aid programs encourage companies to jump in and give it their all? That's where we still see the unknowns." The government's push to foster *new industries will go in hand with restructuring the country's *old growth engines,... such as shipbuilding, shipping and construction. These sectors have been posting eye-watering losses,... dragging down the country's overall recovery momentum. To better support the reform drive, the government also plans to expend an additional 5-point-7 billion dollars of its budget... in the first half of the year. Hwang Ji-hye, Arirang News. Visit ‘Arirang News’ Official Pages Facebook(NEWS): http://www.facebook.com/newsarirang Homepage: http://www.arirang.com Facebook: http://www.facebook.com/arirangtv Twitter: http://twitter.com/arirangworld Instagram: http://instagram.com/arirangworld