Gov’t to offer tax credit to firms investing in ventures

[THE INVESTOR] South Korean companies investing in venture companies will be given tax credits, as part of the government’s measures for boosting investment revealed on July 7.

According to the plans, local companies that directly invest in ventures, or place money in investment funds specializing in venture companies will be given tax credits on 5 percent of the funds involved. 

The measure, which will apply to local companies and financial institutions, will be established during the final quarter of the year. Related changes will be included in the tax law revisions next year.

In addition, call options will be allowed to private sector investors who take part in funds investing in companies in the provinces and those led by women.

They include funds investing in women-led companies, select SMEs and venture companies whose CEO is a woman, or more than 35 percent of whose employees and executives are women.

By Choi He-suk (cheesuk@heraldcorp.com)