ID :
132653
Tue, 07/13/2010 - 09:29
Auther :

S. Korea to offer tax favors, financial support for 'green' R&D


SEOUL, July 13 (Yonhap) -- South Korea will provide sizable tax benefits and
financial support for eco-friendly technology development efforts to help build
up the country's competitiveness in the field, the government said Tuesday.
The finance ministry said tax deductions of up to 30 percent of investments will
be offered for "green" research and development (R&D), with a 1.5 trillion
(US$1.2 billion) specialized fund to be set aside in August to help companies
engage in projects to improve energy efficiency.
Tax deductions are to be expanded from solar power generation at present, to
cover new technologies in wind and thermal power, and eco-friendly cars, while
the specialized fund operated by the state-run Korea Finance Corp. is part of a
larger 107.4 trillion won plan to systematically finance the country's green
technology R&D sector by 2013.
The total amount is equivalent to 2 percent of the country's gross domestic
product in the 2009-2013 period, with the size of the government budget that will
be spent to create markets for green technology products to reach 3.5 trillion
won in 2013 from 1.4 trillion won in 2008.
The money will go into creating markets in rechargeable batteries and next
generation nuclear reactors.
"Such support is needed since green R&D requires long-term investments and has
relatively slow returns, which can cause private companies to delay making
critical decisions," the ministry said.
It pointed out that such delays can cause local companies to fall behind foreign
competitors in grabbing the rapidly emerging market.
In addition to setting aside state funds, the government will ask private
companies to pitch in so the country can meet global trends to reduce greenhouse
gas emissions and development technology that will use up less energy, the
ministry said.
yonngong@yna.co.kr
(END)

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