Economy Minister urges business leaders to engage in active investment

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho makes a statement at the meeting with chief executive officers of mid-sized businesses in Seoul, on June 26. [Photo by Yonhap]

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho urged business leaders to seize the opportunities provided by tax benefits and actively invest in the economy during a meeting on Monday.

Speaking at the gathering with chief executive officers of mid-sized businesses in Seoul, Choo emphasized the importance of investment and exports in boosting the country’s overall economic vitality.

“To enhance the overall economic momentum, investment and exports are of utmost significance,” he said.

Despite the challenging domestic and international conditions, Choo expressed optimism as he noted a gradual stabilization of inflation and evaluated the quantitative employment situation as relatively favorable.

However, Choo also acknowledged the persisting struggles in the semiconductor industry’s recovery and the uncertainty surrounding the reopening in China. Highlighting the key role of exports and investment in the second half of the year, he called upon companies to actively engage in investment opportunities.

“The government is offering a number of tax incentives this year to encourage businesses to invest, including the temporary investment tax deduction scheme, and if companies take advantage of this, it will go a long way toward revitalizing the economy,” he said.

Regarding exports, he said, “There is still uncertainty in terms of the global financial situation and the economy but there are some positive signs, so we will try to build on them.”

The business leaders delivered policy recommendations to the Deputy Prime Minister.

Specifically, the recommendations included providing bold tax incentives for strategic industries, strengthening penalties for industrial espionage, simplifying corporate tax brackets and reducing tax rates, flexing the working hours system, supplementing the Serious Accident Punishment Act, improving the employment permit system for foreign workers, enacting a special law to promote local investment, reducing inheritance tax rates, and allowing deferred payment of inheritance taxes secured by unlisted shares.