Korea's corporate investment to speed until early next year
The Korean government's campaign to stimulate corporate investment may be beginning to bear fruits.
The Ministry of Strategy and Finance said Wednesday that several major Korean companies have decided to spend more than 10-trillion won, or roughly 9-and-a-half billion U.S. dollars, in coming months to build new production or quality-control facilities.
The decisions came after the government took steps to streamline red tapes after hearing difficulties those companies faced.
SK Global Chemical, a subsidiary of the nation's leading oil refiner SK Innovation, will invest 950-million dollars later this month to build a factory in the southeastern port city of Ulsan.
S-Oil, Korea's third-largest refiner, will spend 7-and-a-half billion dollars next January to expand its refinery, also in Ulsan.
Hyundai Motor, the country's largest automaker, is due to break ground on its 560-million dollar testing facility next February.
The planned investments have been stalled due to tough regulations.
The government has eased the regulations and revised related laws to speed up corporate spending on facilties.
President Park Geun-hye's government, which has given top priority to stimulating investment, has found roughly 25-billion dollars worth of projects being held up due to restrictive regulations.
The Park administration has vowed to continue removing unessential regulations to promote investment.
Hwang Ji-hye, Arirang News.
Reporter : email@example.com
'bear fruit', not 'bear fruits'. (I'm an English teacher with a TESOL certificate from the UK.)