Seoul to push for foreign-biz-friendly climate: finance minister

SEOUL, Sept. 9 (Yonhap) -- South Korea will continue its efforts to create a "foreign-business-friendly" environment by providing more incentives, in hopes of luring investment that will be crucial to spurring economic growth, the finance minister said Wednesday.

"The Korean government will continue its efforts to create a better environment
for foreign investors. Foreign investment has played an important role in
facilitating economic growth and solidifying economic fundamentals in Korea,"
Finance Minister Yoon Jeung-hyun told a meeting in Seoul arranged by the European
Union Chamber of Commerce in Korea (EUCCK).
He noted that there has been a marked increase in foreign investment in South
Korea during the first seven months of this year, saying that the rise is based
on "renewed confidence" in the Korean economy's potential and its recovery
outlooks.
But he added there is still much to be done for Korea to be a "more attractive"
investment destination for foreign companies, promising to provide diverse
incentives for their business activities.
"The Korean government will increase incentives to attract foreign investment.
For example, we will provide full exemption for rent on land in foreign
investment zones exclusively for parts and materials production," he said.
He also said that the government will enhance the flexibility in the labor market
and remove "inconveniences" that foreign investment might face in doing business
in South Korea.
Touching on the latest economic conditions here, the top policymaker in charge of
financial measures and budget spending said that South Korea's economy is showing
early signs of recovery.
"Unless (an) unexpected external shock takes place, Korea is likely to achieve
its trend of positive quarterly growth, reaching the initial target of an
annualized growth rate of negative 1.5 percent," he said.
He, however, expressed cautions, citing "a high level of" uncertainty and
potential downside risks, stressing that the nation's export-driven economy
cannot be free from outside factors.
"Keeping that in mind, the Korean government will maintain its vigilance in
formulating and implementing economic policies for continued economic stability,"
he said.
He said that it is still premature to take back stimulus measures the government
has introduced to bolster the slumping economy, adding the government will keep
its "active" fiscal and financial policies until economy is firmly established on
a path to recovery.
"We intend to take a step-by-step approach depending on the progress of economic
recovery," the minister said.
kokobj@yna.co.kr
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