Knowledge-based service firms to be allowed entry into free trade areas

SEOUL, Feb. 15 (Yonhap) -- The government said Monday that it plans to allow
software contents, industrial design and dedicated research and development firms
to operate from the country's free trade areas.

The plan, if made into law, is expected to help the 14 trade areas set up across
the country since 1970 to expand beyond manufacturing, wholesale and logistics
operations, the Ministry of Knowledge Economy said.
In the past these "traditional" industries contributed to growth, but there have
been calls to allow the free trade areas to engage in tech-oriented future growth
industries.
"The country's service industry remains weak and requires systematic support from
the government," a official said.
The special zones, located in such places as the port city of Masan about 380km
southeast of Seoul, were designed to attract foreign business investments, fuel
exports and promote international trade that could contribute to economic growth.

Companies in the free trade areas could engage in production and international
trade with a minimum amount of restrictions, favorable rent conditions and
received considerable benefits in tariffs and import duties. In the past, the
majority of products made and traded in these areas were sold abroad.
Under the revisions, companies that ship goods from in the special areas to the
other parts of the country, need not report supporting documents to the tax
office everytime a transaction is made, but only have submit the list of goods.
Supporting documents could be held by the company for latter cross-checking.
In addition, the government will introduce eased inventory management and checkup
systems for companies in these areas that can reduce unnecessary workload of
businesses.
The ministry in charge of the country's industries policy said the it will
forward a revision bill to parliament by May so it can be made into law within
the year.
yonngong@yna.co.kr
(END)

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