South Korea’s finance minister vowed Wednesday to remove uncertainty over corporate investments as Asia’s fourth-largest economy is moving to cut red tape.
Hong Nam-ki, the minister of economy and finance, also said the government will swiftly resolve difficulties companies could face in making investments, calling corporate investments “a key to economic revitalization.”
|Finance Minister Hong Nam-ki (Yonhap)|
The issue of corporate investments has urgency as South Korea is seeking to create jobs and boost the economy.
South Korea forecast that its economy could grow around 2.6 percent to 2.7 percent next year, compared with 3.1 percent in 2017.
Earlier this week, South Korea said it will speed up administrative procedures to ensure a quick implementation of major corporate investments worth 6 trillion won ($5.3 billion), including a 3.7 trillion-won project by Hyundai Motor Group to build a 105-story building in southern Seoul.
In 2014, Hyundai Motor Group, the world’s fifth-largest carmaker by sales, purchased the land for the landmark building, though no significant progress has been made yet.
“We will monitor developments of relevant procedures,” a Hyundai spokesman said.
In 2015, Hyundai Motor Group, whose flagship units include Hyundai Motor Co. and Kia Motors Corp., announced that it would invest 80.7 trillion won — 61.2 trillion won in South Korea and 19.5 trillion won in foreign countries — by 2018.
Separately, Hong said South Korea will allow people to use KakaoPay Corp. and other South Korean mobile payment platforms in transactions in foreign countries beginning next June.
The move could reduce transaction fees and strengthen the competitiveness of South Korean mobile payment platforms.
South Korea’s credit card issuers pay global credit card giants — Visa Inc. and MasterCard Inc. — about 1 percent of overseas transactions using their networks. (Yonhap)