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S. Korea: Gov't to extend multilateral support for green industry |
| Source: |
news.mk.co.kr/english/ |
| Source Date: |
Tuesday, July 13, 2010 |
| Focus: |
E-Procurement
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| Created: |
Jul 20, 2010 |
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The government has decided to lower the tariff on key parts and components in association with the 'green' industry, according to a report released on July 13. Currently South Korea imposes a tariff of 4-8% on core raw materials of lithium ion rechargeable batteries used for mobile phones an cars, whereas Japan imposes no tariffs on such imported items.
The government plans to raise budget for environment-related research and development projects to 3.5 trillion won 2013 from 1.4 trillion won in 2008. This is part of a plan announced last year that about 2% of the nation's gross domestic product (GDP), or 107.4 trillion won will be poured into the green industry during the 2009~2013 period.
Tax credits will also be intensified. A package with a tax credit of up to 30% will also be applied to green technologies related to wind power and geothermal energy. Businesses with foreign investment in the field of carbon reduction and eco-friendly cars will also be eligible for tax cut application. Items for tariff reduction will be expanded to include facilities for renewable energy production and use.
The government will also raise a fund worth 1.5 trillion won next month to facilitate funding for green companies.
Domestic companies are to respond to the government's measures with a heightened level of investments. Starting next year, top 30 firms in South Korea will make an investment of 22.4 trillion won in green growth sectors for three years. compared with the 15.1 trillion won invested during the past three years, the future investment plan shows a 48.2% hike in the figure.
By sectors, investments in renewable energy and other clean energy sources will amount to 8.9 trillion, the green-car business is to receive 5.3 trillion, and another 4.3 trillion will be spent on the next-generation power devices. The investment in green cars has surged more than two holds compared with the past three years.
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S. Korea: Gov't to extend multilateral support for green industry The government will take measures to promote the green industry It is going to lower the tariff raise budget and intensify tax credits in association with the green industry It will also facilitate funding green companies
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