Deputy Prime Minister and Finance Minister Hyun Oh-seok hinted that policymakers may devise measures to set up a special government agency in charge of attracting foreign investment.
During his policy briefing to the National Assembly on Wednesday, Hyun said he did not believe the nation “has yet to establish a superb environment for foreign investment even though policymakers have put forth much effort.”
Asked by lawmakers about the necessity of launching the foreign investment promotion-oriented agency, Hyun said the government “would contemplate its establishment” after reviewing a variety of systematic conditions.
Aside from the “not-so-excellent business environment,” he pointed to uncertainty over profit outlooks in the corporate sector to affect stagnant foreign investment.
If the policy is adopted and pushed forward, the foreign investment promotion agency is expected to play an integrated role as a one-stop service provider linking the government and overseas investors.
In a similar vein, he said the ministry plans to lift some investment barriers including easing various regulations under the Park Geun-hye administration’s policy direction toward economic recovery based on creating more jobs.
Concerning the issue of whether to open duty-free shops at airport arrival gates, the finance minister took a skeptical position, saying that “there is no such case in developed countries, though tourism industry-oriented countries have duty-free shops in the arrival zones.”
He stressed that a fairness issue could come under the spotlight in that scenario as domestic consumers would have to pay taxes while tourists would be exempted from taxation.
The talks on the issue started in 2001, but policymakers failed to reach an agreement due to their different stances on the issue.
The Ministry of Land, Infrastructure and Transport is reportedly supporting the idea of opening duty-free shops in the arrival areas, arguing that it would spur consumption and raise the global competitiveness of domestic airports.
The Transport Ministry has said duty-free shops for incoming travelers are a global trend and would increase the number of foreign visitors. According to the ministry, 117 airports in 63 countries operate duty-free shops in the arrivals area.
For the recent liquidity woes at shipping giant STX Group, Hyun pledged to minimize a negative chain effect on the overall corporate sector.
As lawmakers worried that corporate difficulties may spread in the market in the wake of STX Pan Ocean’s applying for court receivership, Hyun said financial regulators were taking countermeasures with creditor banks including the state-run Korea Development Bank.
STX Group’s other core units such as STX Offshore & Shipbuilding, STX Heavy Industries and STX Engine were also hit hard by the global shipbuilding industry’s long slump caused by the global economic slowdown and eurozone debt crisis.
By Kim Yon-se (
kys@heraldcorp.com)
