Hong Nam-ki, Deputy Prime Minister for Economic Affairs and Minister of Strategy and Finance, said on July 22 that the Korean government plans to drastically cut tax on companies that reform their business structure in response to changes in industrial structure such as digital transformation and carbon neutrality.
The government also announced that it will provide more than 2 trillion Korean won in facility investment funds by 2023 for 65 core technologies and facilities of three major national strategic technologies such as semiconductors, batteries, and vaccines.
"The government plan to expand financial support, R&D and facility investment tax support for national strategic technologies," Deputy Prime Minister Hong said at the 41st Central Emergency Economic Countermeasures Headquarters.
"The government will give special regulations on fair trade laws to companies that approve business reorganization based on carbon neutrality and prepare support regulations for joint business reorganization between large and small companies," he added.
The government will create a new financial support program for business restructuring companies worth 500 billion Korean won this year and is planning to provide 100 billion Korean won worth of primary collateralized bond obligations (P-CBO) guarantees for business reorganization companies.
