President Yoon Vows Regulatory and Tax Incentives for Foreign-Invested Firms in South Korea

SEOUL - In a significant move aimed at bolstering foreign investment, South Korean President Yoon Suk Yeol announced on Wednesday his administration's commitment to extend regulatory and tax benefits to foreign-invested companies operating within the nation. This pledge was made during a luncheon meeting with executives from leading foreign-invested enterprises, including the South Korean branches of Applied Materials and DuPont, two major American firms specializing in semiconductor equipment and chemicals, respectively.

According to Yonhap News Agency, the decision underscores the government's recognition of the substantial role these companies play in the South Korean economy. "You all are greatly contributing to our country's economy, and I think it is time for our government to provide systems and a regulatory environment that meet, or are more favorable than, the global standard, and not spare various tax and other support measures," he remarked.

The president emphasized the need for a cooperative effort with the National Assembly to address legislative and budgetary requirements that support these initiatives. He highlighted the critical contribution of foreign-invested companies to the South Korean economy, noting their responsibility for 21 percent of the nation's exports and 6 percent of its employment. Yoon assured that while some measures would require legislative action, his administration is prepared to proceed with changes within the executive's authority, including subordinate legislation, to facilitate a more favorable business environment for these enterprises.

This policy direction aims to enhance South Korea's attractiveness as an investment destination by aligning its regulatory and tax frameworks with international standards, thereby encouraging further contributions from foreign investors to the country's economic development.

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