Korea`s economy keeps `positive` momentum: finance ministry

(ATTN: ADDS comments, gov't support for drug makers from 2nd para)
SEOUL, Feb. 5 (Yonhap) -- South Korea's economy is maintaining its "positive"
momentum as production, consumption and investment are steadily recovering from a
downturn, the nation's top economic policymaker said Friday.
"According to the industrial output figures for January, production, consumption
and investment are all rebounding compared with a month earlier. Our economy is
keeping its positive momentum now," Finance Minister Yoon Jeung-hyun told a
meeting with other ministry officials.
He cited the local currency value and higher oil prices as possible downside
risks, saying that the nation's export-driven economy should bolster domestic
demand in tourism and other areas.
During the meeting, also attended by representatives of several pharmaceutical
companies, Yoon said that development of new drugs leads not just to the creation
of "huge" profits but also contributes to society and the overall economy.
The minister said that the government will bolster research activities in the bio
and pharmaceutical sectors as part of efforts to encourage investment in drug
development, which is time- and capital-intensive.
In a related move, he noted that the government will provide tax benefits to
investment made in research and development by local drug makers.
"Drug development is a time and money consuming process and companies, especially
smaller ones, are having difficulty in inventing new drugs," Yoon said.
"This is the first comprehensive government meeting aimed at discussing how to
enhance the overall competitiveness of the pharmaceutical industry. We will
review opinions and suggestions from the companies from a positive point of
view." he added.
kokobj@yna.co.kr
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