President Park Geun-hye held a New Year’s lunch meeting with overseas business leaders at Cheong Wa Dae on January 9.
“I would like to thank foreign businesses for investing in Korea with their continued faith in the economy, despite the global uncertainties found around the world,” said President Park to the participating CEOs of foreign firms and chiefs of chambers of commerce from the U.S., Japan, China, Europe and other major economies.
“It is with great confidence that I can recommend Korea as the most promising destination,” she added.
President Park emphasized that Korea has some of the world’s leading companies in high value-added manufacturing sectors, such as IT, automobiles, ocean-based industrial plant construction, has a strong parts industry and a high quality of human resources. She also stressed that the country is a good place to invest as it is closely linked through free trade agreements (FTA) to major economies like the U.S., EU and ASEAN.
“The range of investment opportunities for foreign investors will be expanded,” said the president. She mentioned the revised Foreign Investment Promotion Act which passed the National Assembly on January 1 as part of the Korean government’s efforts to create a helpful investment environment. President Park also said that her administration will make Korea, “the best country in the world in which to run a business,” by carrying out her administration’s three-year economic innovation plan. The plan, first mentioned earlier this month, focuses on reforms in the public sector, the development of creative industries through the pursuit of her “creative economy vision,” and a rebalancing away from exports through the revitalization of the domestic market.
At the meeting, the government revealed its plans to promote foreign investment in Korea by offering preferential personal income tax rates to expatriate businesspeople. According to the Ministry of Trade, Industry and Energy, foreign executives who work in Korea at the headquarters or regional offices of a foreign company will be subject to a flat personal income tax rate of 17 percent, unlike their Korean counterparts who are subject to a sliding personal income tax rate. This special tax rate is now permanent, previously only being eligible for tax year 2014.
Expatriate technicians or engineers who work in Korea at foreign companies’ research and development centers will be subject to a 50-percent discount on their income tax bill until 2018. Finally, if a foreign company employs at least one Korean national, it will be able to get a tax rebate worth up to KRW 20 million, up from the existing amount of 10 million, to put against their corporate taxes for the year.
By Yoon Sojung
Korea.net Staff Writer
arete@korea.kr
“I would like to thank foreign businesses for investing in Korea with their continued faith in the economy, despite the global uncertainties found around the world,” said President Park to the participating CEOs of foreign firms and chiefs of chambers of commerce from the U.S., Japan, China, Europe and other major economies.
“It is with great confidence that I can recommend Korea as the most promising destination,” she added.
President Park Geun-hye (right) delivers greetings during a lunch meeting with foreign business leaders at Cheong Wa Dae on January 9. (Photo: Cheong Wa Dae)
President Park Geun-hye (center) highlights the strengths of the Korean economy by emphasizing how the country is the most promising investment destination for foreign businesses, at Cheong Wa Dae on January 9. (Photo: Cheong Wa Dae)
President Park emphasized that Korea has some of the world’s leading companies in high value-added manufacturing sectors, such as IT, automobiles, ocean-based industrial plant construction, has a strong parts industry and a high quality of human resources. She also stressed that the country is a good place to invest as it is closely linked through free trade agreements (FTA) to major economies like the U.S., EU and ASEAN.
“The range of investment opportunities for foreign investors will be expanded,” said the president. She mentioned the revised Foreign Investment Promotion Act which passed the National Assembly on January 1 as part of the Korean government’s efforts to create a helpful investment environment. President Park also said that her administration will make Korea, “the best country in the world in which to run a business,” by carrying out her administration’s three-year economic innovation plan. The plan, first mentioned earlier this month, focuses on reforms in the public sector, the development of creative industries through the pursuit of her “creative economy vision,” and a rebalancing away from exports through the revitalization of the domestic market.
At the meeting, the government revealed its plans to promote foreign investment in Korea by offering preferential personal income tax rates to expatriate businesspeople. According to the Ministry of Trade, Industry and Energy, foreign executives who work in Korea at the headquarters or regional offices of a foreign company will be subject to a flat personal income tax rate of 17 percent, unlike their Korean counterparts who are subject to a sliding personal income tax rate. This special tax rate is now permanent, previously only being eligible for tax year 2014.
Expatriate technicians or engineers who work in Korea at foreign companies’ research and development centers will be subject to a 50-percent discount on their income tax bill until 2018. Finally, if a foreign company employs at least one Korean national, it will be able to get a tax rebate worth up to KRW 20 million, up from the existing amount of 10 million, to put against their corporate taxes for the year.
By Yoon Sojung
Korea.net Staff Writer
arete@korea.kr
President Park Geun-hye (left) shakes hands with foreign business leaders at Cheong Wa Dae on January 9. (Photo: Cheong Wa Dae)