The South Korean government has decided to give tax benefits to companies returning home from overseas as part of efforts to reinvigorate economy.
According to a plan announced on Tuesday, a mid-sized Korean company whose asset exceeds 500 billion won ($431.5 million) will be exempt from up to 100 percent of corporate tax, income tax and tariff imposition for five years if they bring back part of their offshore plants to Korea.
Also, subsidies for employment worth up to 10.80 million won for a job created by a company returning or reshoring in Korea will be expanded from small-scale to mid-sized companies.
In the past, eligible mid-sized companies were required to shut down their overseas plants completely, but this requirement has been eased in the new measure. A government official said the new measure aims to lower the barrier for applications.
The government will also bolster its support for new industries and service businesses. The government will raise about 2 trillion won by restructuring state-funded R&D projects and inject the funds into 11 selected new and promising industries including robot, intelligent car and biotech and healthcare industries.
The government will also provide tax benefits to companies in the selected industries when they make investments in research projects or facilities.
By Lee Seung-yoon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]