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To revive regional economies amid the worsening financial crisis, the government will inject W100 trillion (US$1=W1,364) over the next five years, or 7 percent of the national budget.
It will seek to increase tax revenue for local governments by introducing local income and consumption taxes. At the same time, the period of corporate and income tax cuts for enterprises that move from the Seoul metropolitan area to the provinces will be extended from the current 7 years to 10.
Some W14 trillion will go to a mega project to restore the four major rivers -- the Han, Nakdong, Geum, and Yeongsan -- over the next four years. The government claims this is a Korean-style green New Deal that will create 190,000 jobs and promote production worth W23 trillion.
The government is also talking about building a super economic zone that will link four key regions -- the east coast (energy and tourism), the west coast (international logistics, business, and new industries), the south coast (marine tourism, logistics, and economy), and the area near the demilitarized zone (inter-Korean exchanges) -- with a belt of specialized inland regions (corporate and innovative cities, and research and development).
(englishnews@chosun.com )
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