Korea mulls tax perks for firms that create more jobs

South Korean companies that create jobs from partnerships with municipal governments will receive incentives from the government.
By: | March 11, 2019


If South Korean companies offer more jobs as a result of the deals they have forged with municipal governments and other relevant parties, the country’s government will give them incentives, according to the Ministry of Trade, Industry, and Energy.

Among the perks are investment subsidies and tax cuts. Discounts in rental fees at industrial complexes would also be among the incentives, said the ministry, adding that a company may receive KRW9bn (US$7.9m) back from a municipal government if it invests KRW90bn.

To note, the government has been meaning to boost the labour market as part of its strategy to revive the economy.

The move is inspired by Hyundai Motor’s joint venture with Gwangju Metropolitan City. Earlier this year, Hyundai Motor said it would invest KRW53bn in an assembly plant in Gwangju to produce mini sport utility vehicles.