FDI in free economic zones soars 164 pct in H1: data
Foreign direct investment (FDI) pledged to S. Korea's free economic zones (FEZs) more than doubled in the first half of this year to hit a three-year high amid post-pandemic economic recovery, data showed on July 21. The country's nine FEZs received USD 560 million worth of FDI commitment during the January-June period, up 164 percent from a year earlier, according to the data compiled by the Ministry of Trade, Industry and Energy. It is the highest figure since the first half of 2019, when the FDI commitment came to USD 960 million. The country has designated nine FEZs across the country since 2003, including those in the western city of Incheon and the southeastern port city of Busan, by offering tax incentives and eased regulations for foreign companies.
Korea to raise cash support on foreign investments in key sectors
S. Korea plans to spend more cash on attracting foreign investments in high-tech and core supply chain industries as foreign direct investment to Asia’s fourth-largest economy in the first half dropped on surging global inflation and interest rates, as well as the war in Ukraine. The Ministry of Trade, Industry and Energy said on July 17 that the government will provide up to 50% in cash of spending by foreigners on the national strategic technology sectors such as semiconductors, secondary batteries and vaccines. The government also plans to make further support of up to 10 percentage points on foreign investments that improve the country’s supply chain and carbon neutrality. The country had been providing as much as 40% of investments in the domestic core technologies excluding the establishment of research and development centers.
***This article is extracted from Invest KOREA information center, 2022.
#Businesskorea #FDI #CashSupport #FreeEconomicZone #FEZ
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