Small and Mid-sized Companies to Get 10% Facility
Investment Support
From next year, small and mid-sized manufacturing companies that plan to open businesses in rural regions, excluding Seoul and Gyonggi Province, will recieve 10% financial support of their manufacturing facility investment from the government. The government will also waive all taxes during their first three years.
The central government and the ruling Uri Party yesterday announced ‘Comprehensive Measures for Improving the Business Environment.’ The incentive system aims to support local governments assisting new business openings by transferring some central government rights on restrictions against business activities to local governments.
Why do these measures come about?
According to some experts, in the current situation where the Korean economy seems continuously sluggish, the government has to create alternatives for economic recovery. A government source revealed his skepticism about the optimistic outlook that the economy will be soon resumed. The government has removed some obstacles against activating facility investment.
Major Contents
The government will support local manufacturing companies in various ways to create more job opportunities. For a company that invests more than 500 million won, the government plans to allow the business owner to employ as many foreign laborers as the number of domestic laborers.
Regarding the incentive system, some experts forecast that it will enable local manufacturing companies to activate their depressed local business sectors, but others reacted negativity because it was far from their expectations.
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 / 입력시간: 2006. 09.30. 11:49
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