S. Korea works to attract private investment to green, digital sectors
- 4 years ago
정부, 한국판 뉴딜 펀드에 정책금융 외 공모 인프라펀드•민간투자 유치... 세제혜택도 제공
Not only is the New Deal fund financed by the government, but it's looking to attract private investments to green and digital sectors.
Some attraction points include tax breaks. For instance, should an investor earn less than 168-thousand dollars in dividend income from the fund, he or she will be levied a 9-percent tax rate - much lower than the current rate of 22-percent.
This and more, our Oh Jung-hee has a breakdown.
The Korean New Deal Fund that the Moon Jae-in administration has ambitiously laid out for the next five years to come... is made of three key pillars a fund that the government runs directly, a fund that's focused on developing infrastructure... and a private fund.
The first fund, run by the government, will come to 16-point-8 billion U.S. dollars.
35-percent of it will be drawn from the government's budget,... while the rest will come from state-run financial institutions and private financial firms.
The fund will be used to invest in projects like building hydrogen energy stations, developing hydrogen and electric vehicles, and building renewable energy facilities.
The government also plans to provide a tax incentive of 9-percent for investment funds... that put 50-percent of their funds into New Deal-related infrastructure projects... like digital infrastructure management systems and renewable energy generation districts.
The cap for receiving the tax reduction is roughly 168-thousand U.S. dollars.
As well as that, the government looks to encourage private firms to form investment funds of any type... if they find attractive investment outlets relating to the New Deal initiatives.
The Moon administration says it will work to create the desired investment environment by, for example, getting rid of regulation.
"The New Deal Fund will have a win-win structure that provides a strong power engine for the Korean New Deal initiative while returning outcomes to the public. The government will work to quickly revise laws and prepare guidelines so that the fund can be out in the market as soon as possible."
The Korean New Deal initiative was announced back in July.
The overall aim is to foster green and digital sectors to create jobs and overcome the economic fallout from COVID-19.
Oh Jung-hee, Arirang News.
Not only is the New Deal fund financed by the government, but it's looking to attract private investments to green and digital sectors.
Some attraction points include tax breaks. For instance, should an investor earn less than 168-thousand dollars in dividend income from the fund, he or she will be levied a 9-percent tax rate - much lower than the current rate of 22-percent.
This and more, our Oh Jung-hee has a breakdown.
The Korean New Deal Fund that the Moon Jae-in administration has ambitiously laid out for the next five years to come... is made of three key pillars a fund that the government runs directly, a fund that's focused on developing infrastructure... and a private fund.
The first fund, run by the government, will come to 16-point-8 billion U.S. dollars.
35-percent of it will be drawn from the government's budget,... while the rest will come from state-run financial institutions and private financial firms.
The fund will be used to invest in projects like building hydrogen energy stations, developing hydrogen and electric vehicles, and building renewable energy facilities.
The government also plans to provide a tax incentive of 9-percent for investment funds... that put 50-percent of their funds into New Deal-related infrastructure projects... like digital infrastructure management systems and renewable energy generation districts.
The cap for receiving the tax reduction is roughly 168-thousand U.S. dollars.
As well as that, the government looks to encourage private firms to form investment funds of any type... if they find attractive investment outlets relating to the New Deal initiatives.
The Moon administration says it will work to create the desired investment environment by, for example, getting rid of regulation.
"The New Deal Fund will have a win-win structure that provides a strong power engine for the Korean New Deal initiative while returning outcomes to the public. The government will work to quickly revise laws and prepare guidelines so that the fund can be out in the market as soon as possible."
The Korean New Deal initiative was announced back in July.
The overall aim is to foster green and digital sectors to create jobs and overcome the economic fallout from COVID-19.
Oh Jung-hee, Arirang News.