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Gov't Considers Measures to Boost Corporate Investment

The government is considering ways to stimulate corporate investment in facilities amid concerns the prolonged sluggish business spending could undercut the overall economic recovery, sources said Sunday.

The measures could include offering up to 6 trillion won (US$5.5 billion) worth of financial support for companies. Tax benefits are also under consideration to boost corporate investment, according to government sources.

"The economy has been showing signs of a recovery recently, but as far as its momentum is concerned, that has not reached a point where ordinary people can feel it," a high-ranking finance ministry official said. "We are reviewing measures from many angles to help boost the economy."

The government will come up with related measures for close review in meetings of economy-related policymakers on Monday, the sources said.

Financial support for businesses could include low-interest loans and guarantees for small- and medium-sized companies. It will likely be provided by tapping state funds and policy financing, and the amount could be around 4 trillion won to 6 trillion won.

The government is also considering offering tax incentives for companies that are pushing to make additional investment in facilities within this year, the sources said.

"We cannot say that the financial support currently under consideration is enough to be called mini-stimulus measures, but we hope that they help accelerate economic growth and eventually contribute to our country recovering its growth momentum," the finance ministry official said.

Source Text

Source: Yonhap News (Sep. 15, 2013)

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