First investment revitalization meeting with heads of six economic organizations... Expanded corporate inheritance tax support
Starting next month, the vice-ministerial investment express will be operationalized... Close support until investment is completed

Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok held a meeting at the Korea Chamber of Commerce and Industry on the 24th with ministers of related ministries and representatives of economic organizations to explore ways to revitalize investment in the second half of the year.

Choi said that while the Korean economy is continuing to recover thanks to strong exports, domestic demand has been relatively slow to recover, and the government will actively support the revitalization of investment, which has recently shown signs of recovery, to accelerate domestic demand.

Choi said the meeting was meaningful as the first time the public and private sectors came together as “One Team Korea” to discuss ways to revitalize investment, adding that the government plans to start operating the vice-ministerial-level Investment Express in earnest from next month, and asked the business community to make suggestions to the government on the difficulties they encountered in the field related to investment projects.

Choi emphasized that the government is also working on reforming the tax system to strengthen investment incentives, and plans to expand tax support for corporate inheritance, such as abolishing the deduction limit for the start-up of Opportunity Development Zones and transferred companies, to promote corporate valuation, and to process the amendment to the Tax Exception Limitation Act to extend the national strategic technology tax credit for three years.

He also said he will actively support securing talented people and technologies that can lead companies' bold challenges and innovation.

To this end, the government will seek to improve the system to resolve the labor shortage in high-tech fields, strengthen exchanges and cooperation with global talents, and support the return of talented people living abroad to Korea, while also investing KRW 29.7 trillion in R&D next year, the largest ever, and focusing on three game-changers such as AI, bio, and quantum, as well as key strategic areas such as semiconductors, to stay ahead of the global technology hegemony.

Choi said that the 4+1 structural reforms to increase the growth potential and sustainability of the Korean economy will be completed after fully building social consensus.

He also asked the business organizations to fully guarantee employees' vacations, including the temporary national holiday (Oct. 1), and encourage their members to actively participate in Korea Sale Festa (Nov. 9-30), the country's largest shopping festival, in order to create a consumption atmosphere that is crucial to boosting domestic demand.

The business groups attending the meeting expressed their hope that the meeting will provide more opportunities for the government and business to communicate with each other, and recommended a number of issues to the government, including dramatic regulatory improvements to create an investment-friendly environment, unconventional government support for companies' investment in technology and facilities in high-tech sectors, and improvements to labor-related systems such as flexible working hours and continuous employment.

Choi said the government plans to hold an economic relations ministerial meeting and investment promotion ministerial meeting next week to announce various investment measures to revitalize construction, ventures and private investment, and promised to respond to the business groups' recommendations with results, including prospectively examining them and reflecting them in future measures.
 

[Korea Economy Press]