4^th Vice Ministerial Meeting on ‘Growth through Innovation’

4^th Meeting Discusses Plans for National Investment Projects

Vice Minister of Strategy and Finance Ko Hyoung-kwon presided over the 4^th Vice Ministerial Meeting on ‘Growth through Innovation’ held on July 13, and discussed the government plan for national investment projects, along with ways to redesign the corporate investment support to encourage job creation and promote the development of new technologies.  The meeting also dealt with the performance of the joint private-public ‘growth through innovation’ taskforce.

The following is a summary of Vice Minister Ko’s keynote address.

Performance of the joint private-public ‘growth through innovation’ taskforce

The taskforce has been working on addressing various difficulties faced by various corporations since June 20.  They have toured around the country to look into problems in person, which have halted corporate investment.  The outcomes so far of the tours are as follows:

- Regulations have been revised, which blocked the construction of an aero-logistics center in Yeongjong Island where Incheon International Airport is located, and a total of 170 billion won of investment is expected as a result

- Modular hydrogen fueling stations, which have been limited to R&D use only, will be allowed for commercial use, and this will save the installation costs as they will fall from 3 billion won to 1 billion won

Plans for national investment projects

The government has decided to work on the national investment project, which will be a joint private-public investment project and will be designed taking into consideration job creating potential and the effect on the economy, as well as how much it will influence the development of future growth engines.  The national investment project will reflect interest and willingness of the private sector, the government playing a supporting role.  We will work government-wide to develop a most appropriate project for the purpose.

Redesign corporate investment support to promote employment, as well as new technologies

The government is working on revising the current corporate investment support to promote job creation and new technologies.  We will

- Revise the corporate and income tax incentives to promote job creation

- Expand the tax reduction for new growth engine investment and ease requirements for new technology support, including the blockchain technology investment support

Announce plans for regulatory reform as soon as possible

The government is working to complete its plan for regulatory reform as soon as possible, focusing on regulations which have a greater impact on markets and employment.  Ministries in charge of those regulations will be responsible for the reforming of the rules.