South Korean government unveils measures to boost corporate investment amid martial law debacle
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The South Korean government on Wednesday unveiled a series of measures to stimulate corporate investment in key industries, aiming to address concerns that recent political turmoil could have long-term negative effects on the economy.
The plan was introduced during a meeting chaired by Finance Minister Choi Sang-mok and attended by other economy-related ministers, amid rising concerns following the recent declaration of martial law and the impeachment of President Yoon Suk Yeol, Yonhap news agency reported.
"The breakthrough for overcoming internal and external challenges ultimately lies in corporate investment," Choi said.
Under the plan, the government will provide various forms of support and incentives to facilitate investment in seven large-scale projects worth a combined 9.3 trillion won ($6.5 billion).
The projects include an artificial intelligence cluster hub in Gwangju, just outside Seoul, and the construction of a cutting-edge secondary battery facility in Saemangeum, a 409-square-kilometre reclaimed area in North Jeolla Province.
To accelerate progress, the government plans to fast-track administrative procedures by more than six months, allowing construction to commence early next year, Choi said. Additionally, tax incentives will be expanded.
"We will revise regulations and improve institutional frameworks to create an investment-friendly environment, ensuring businesses can proceed with their plans smoothly," Choi said.
The government is also prioritising the approval of a semiconductor cluster in Yongin, south of Seoul. Originally slated for approval in the first half of next year, the process will now be completed by the end of this year.
"Amid concerns that the current domestic political situation could weaken corporate investment plans, we will actively support businesses to maintain their momentum," he said.
Since the brief imposition of martial law on December 3, Choi, who doubles as deputy prime minister for economic affairs, has been holding daily meetings with business leaders from both home and abroad to ensure the country's credibility.
