Gov`t eases corporate sector rules to fuel economic growth

By Lee Joon-seung
SEOUL, May 27 (Yonhap) -- South Korea said Wednesday it will ease
business-related restrictions that have been cited as hindering economic growth.
The prime minister's office said it will suspend or scrap 280 regulations on
setting up new businesses, sales activities and small- and medium-sized
enterprises (SME).
The measures come as Seoul and foreign analysts predicted the country will post
negative growth this year, translating into fewer investments and a loss of jobs.
Export-driven South Korea has been hard-hit by the global economic slump,
triggered by the U.S. financial crisis last year.
The plan aims to ease building rules for factories, potentially allowing up to
50,000 companies to expand existing facilities, and will lower rent for SMEs
using state-owned assets.
The measures will, in addition, reduce infrastructure charges levied on companies
that build new plants and lower basic utility costs.
It also calls for the extension of corporate and income tax benefits to smaller
companies until 2011. Under the new scheme, the country's construction laws will
be readjusted to help builders grow. Construction accounts for roughly 18 percent
of South Korea's gross domestic product.
"Of the 280 rules that will be eased, 140 will be only on a temporary basis,
hopefully pushing companies to take quick action," a government spokesman said.
He stressed that the latest move could help a large amount of liquidity flow into
the market by reducing costs associated with business activities.
The government said that a related enforcement ordinance will go into effect in
July so as to have an immediate impact, with those requiring legislative approval
soon to be submitted to the National Assembly.
yonngong@yna.co.kr
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