Date
2017.03.03
According to Yonhap News,
(SEJONG=Yonhap News) South Korea's finance minister said Friday that he will put more efforts into intense corporate restructuring in all industries in a bid to revive the country's growth potential.
"It is important for companies to preemptively reorganize and restructure to prevent possible risks," Finance Minister Yoo Il-ho said in a ministerial meeting in Seoul. "The government will push forward with corporate reorganization both in the manufacturing and service industries."
He said the government will help more than 40 companies carry out their voluntary corporate restructuring through fast-track legal and administrative procedures this year.
As part of the Seoul government's efforts to speed up corporate restructuring in shaky industries, including shipbuilding, steel and petrochemicals, 24 companies, including leading chemicals manufacturer Hanwha Chemical Corp. and LG Chem, the country's largest chemicals manufacturer, are subject to the so-called "one-shot" act.
The law was designed to help businesses conduct intra-corporate mergers and spin-offs through simplified procedures including exemptions from strict antitrust laws and financial market regulations. They will also be given tax benefits and subsidies for research and development on corporate restructuring.
Under the new law, the companies that want to benefit from the fast-track corporate restructuring procedures are required to win government approval.
They will be guided to reduce the supply glut and upgrade their production facilities as part of the government's plan to have the companies redesign and diversify their business portfolio.
Yoo said he will also come up with supplementary measures to look after workers who lose their jobs following strict downsizing efforts especially in the labor-intensive shipbuilding sector.
South Korea's Finance Minister Yoo Il-ho (Yonhap) South Korea's Finance Minister Yoo Il-ho (Yonhap)
brk@yna.co.kr
Copyrights Yonhap News. All Rights Reserved.
Reprint or redistribution without permission is prohibited.
(SEJONG=Yonhap News) South Korea's finance minister said Friday that he will put more efforts into intense corporate restructuring in all industries in a bid to revive the country's growth potential.
"It is important for companies to preemptively reorganize and restructure to prevent possible risks," Finance Minister Yoo Il-ho said in a ministerial meeting in Seoul. "The government will push forward with corporate reorganization both in the manufacturing and service industries."
He said the government will help more than 40 companies carry out their voluntary corporate restructuring through fast-track legal and administrative procedures this year.
As part of the Seoul government's efforts to speed up corporate restructuring in shaky industries, including shipbuilding, steel and petrochemicals, 24 companies, including leading chemicals manufacturer Hanwha Chemical Corp. and LG Chem, the country's largest chemicals manufacturer, are subject to the so-called "one-shot" act.
The law was designed to help businesses conduct intra-corporate mergers and spin-offs through simplified procedures including exemptions from strict antitrust laws and financial market regulations. They will also be given tax benefits and subsidies for research and development on corporate restructuring.
Under the new law, the companies that want to benefit from the fast-track corporate restructuring procedures are required to win government approval.
They will be guided to reduce the supply glut and upgrade their production facilities as part of the government's plan to have the companies redesign and diversify their business portfolio.
Yoo said he will also come up with supplementary measures to look after workers who lose their jobs following strict downsizing efforts especially in the labor-intensive shipbuilding sector.
South Korea's Finance Minister Yoo Il-ho (Yonhap) South Korea's Finance Minister Yoo Il-ho (Yonhap)
brk@yna.co.kr
Copyrights Yonhap News. All Rights Reserved.
Reprint or redistribution without permission is prohibited.
Source: Yonhap News (Mar. 3, 2017)