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Investment promotion measures: tourism, ventures and construction.

The government unveiled the Investment Promotion Measures for Tourism, Ventures and Construction at the 8th Trade and Investment Promotion Meeting, along with its plan to support the restart of stalled projects. Tourism, ventures and construction have been selected, taking into account the effects the industries will have on other areas.

Support for stalled projects

--Remove permit-related obstacles to solar panel projects in the Saemangeum Reclamation Area, which is expected to attract 0.3 trillion won of investment

--Provide environmental analyses of offshore solar power plants to support the installation of 13 offshore solar power plants, which has been stalled due to the lack of such data

--Facilitate cooperation between the two parties with regard to the use of sandy soil, one of the by-products of factory construction: One can use the soil for offshore reclamation to build a factory, while the other can dispose the by-product, which will get around 0.5 trillion won of investment to be made

--Support the driverless car project in the Seosan industrial zone by providing a site for research centers and roads for testing the car to be located

--Allow a company to lease its pier to its subsidiary if the company meets the requirement regarding shareholding in subsidiaries in order to support the subsidiary's tank terminal business


--Help the tourism industry overcome the MERS aftermath by increasing financial support (300 billion won), easing visa regulations, and cooperating with foreign health authorities to promote medical tourism

--Help develop customized tours: tours involving popular music performance, traditional food and shopping, in particular cosmetics, for Asian female tourists aged between 20 and 50, tours involving medical care, casino visits and cruise for male tourists in their 30s and 40s, tours involving sports and outdoor activities for female tourists aged between 20 and 40

--Increase competitiveness: improving communications, transportation and accommodation services for tourists, developing creative tour programs, and improving the quality of group tour packages


--Develop the Creative Economy Innovation Centers into a base for startup ventures, where support specific to different stages of business development, from idea incubation to overseas marketing, is provided

--Encourage venture establishment by talented young adults: giving them financial and military service incentives, granting incentives to talented foreigners (those holding special professional visas, E-3) when transferring to a technology-based startup visa, easing regulations regarding technology ventures including the joint surety requirement and minimum shareholding requirement for subsidiary ownership, building a human capital information system to facilitate the use of local talents, supporting the establishment of startup accelerators including giving them tax incentives, providing customized startup support according to the stages of business development

--Promote M&As of venture SMEs by large corporations: increasing M&A tax incentives, easing shareholding regulations, designating investment banks that specialize in M&As of SMEs, enacting a Corporate Revitalization Act to facilitate venture M&As

--Promote venture investment: allowing the secondary sales of stakes in venture capital funds as well as facilitating IPOs by encouraging competition between the KOSPI and KOSDAQ markets, easing regulations regarding the establishment of venture capital funds, such as allowing the establishment of M&A and secondary market funds without investment by a fund of funds and authorizing New Technology Venture Capital Companies (1) and limited liability companies to manage venture capital funds, requiring a fund of funds to invest 30 percent of its capital in a new Young Adult Startup Fund (2), expanding the income tax deduction for angel investments from investments in venture companies to startup companies which are 3 years old or less and meet R&D investment requirements (3)

Building reconstruction

--Ease floor ratio requirements for joint reconstruction on properties owned by more than 2 individuals and reconstruction in government-designated special urban areas

--Support the restart of stalled reconstruction by giving tax reductions, easing floor ratio requirements and settling disagreement between interested parties

--Promote private sector investment in public building reconstruction, which will be directed towards constructing a building used both commercially and for public service

--Support building renewal to ensure safety: carrying out safety inspections of old buildings and encouraging renewal based on the results, providing more than 500 billion won in support for old building renewals as well as offering long-term loans with low interest rates for renewals in the Urban Renewal Areas, revising building regulations to give multiple-use approval (4)

(1) Financial institutions specializing in new technology investment

(2) A total of 300 billion won worth of funds to be launched in 2015-2017

(3) The amount will be set

(4) The use of a dormitory building for tourist accommodations during breaks
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Title Annotation:Policy Issues
Publication:Economic Bulletin (Korea)
Date:Jul 1, 2015
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