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The Ministry of Knowledge Economy (MKE) decided to consider increasing the number of items subject to tariff cuts in an attempt to stimulate the tourism industry during the 131st emergency economic meeting held in mid-August, according to Jeju.
If approved, the revised tariff plan will reduce tariffs imposed on imported
marbles used in building tourism facilities, which is expected to benefit foreign
investors who engage in tourism development projects.
The current Foreign Investment Promotion Act includes machinery, equipment, devices and components which are used for industrial facilities and livestock, seeds, plants and trees and seafood used in agricultural, forestry and fishery industries in the list of tariff cut items but exclude marbles mostly used in constructing tour hotels and membership resorts from the list.
Foreign investors in Jeju have long requested that imported capital goods used in the tourism industry be subject to tariff cuts, just like other goods produced from primary and secondary industries, considering contributions the tourism industry has made for the domestic economy including job creation.
Jeju submitted the suggestion to the foreign investment consultative meeting, organized by the MKE in February.
Adding marbles to the list of tariff cut items is expected to increase foreign investment to Jeju's tourism industry.
For one, Berjaya Jeju Resort, a developer of Yerae resort-type residential complex in Seoguipo City, could benefit a lot from the tariff reduction by up to 1.6 billion won under the revised tariff plan on marbles.
Jeju decided to establish a Jeju foreign investor consultative meeting this month to create a foreigner-friendly environment by resolving their grievances and improving investment system.