Korea Looking To Boost FDI In 2008

by Mary Swire, for LawAndTax-News.com, Hong Kong

02 April 2008

Following a meeting with the Korean government's Foreign Investment Committee on Monday, Knowledge Economy Minister, Lee Youn-ho pledged to attract foreign direct investment (FDI) of more than USD12bn to the country this year, by putting in place further tax breaks, and improving conditions for expat workers.

Korean FDI levels have fallen in recent years, with the government having been viewed as not particularly business friendly.

However, following his election earlier this year, President Lee Myung-bak has vowed to turn things around, and to promote South Korea as a welcoming and transparent location for overseas business.

The Knowledge Economy Minister revealed on Monday that the government will, next month, unveil a three-year plan, reportedly set to include tax incentives, measures to include conditions for foreign workers, and possible assistance in the area of land purchase for business purposes, amongst other proposals.

According to a Korea Times report, Minister Lee explained that:

"Reaching the target may not be easy, but there must be a concerted effort by the government and local officials to make changes that can help attract investment from abroad."

The Korean authorities are hoping to achieve a 6% growth rate this year.

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