`2014 to see 4% growth'
By Kim Yoo-chul
Finance Minister Hyun Oh-seok
Finance and Strategy Minister Hyun Oh-seok Saturday said the economy is expected to grow 4 percent next year.
“The upward momentum is strengthening from the second half,” the finance minister said during an annual forum by the Federation of Korean Industries (FKI), the big business lobby, on Jeju.
Hyun, also concurrently serving as the deputy prime minister, pointed out that the 1.1 percent growth during the April-June period ended the previous eight quarters of weak growth.
The increased government spending and private consumption contributed to it, despite a slowing growth in China.
The minister reiterated that growth is the top priority of the second half, adding more steps will be taken to help firms.
He said that these steps will include easing regulations, tax burdens as well as more support for startups in a bid to persuade companies to boost spending.
Hyun said the service industry has growth potential, adding the government is paying more attention to finding ways of spurring growth.
The minister also tried to clarify the “misconception” that the democratization of the economy aims at helping small- and medium-sized firm at the cost of big corporations.
“The policy aims to foster a fairer business environment for smaller businesses, while monitoring unfair practices by big businesses,” he said.
Chaebol have been under fire for their practice of granting profitable contracts to their affiliates owned by their children or grandchildren in a bid to avoid paying gift taxes on future transfers of wealth.
“It’s true that big companies that have many affiliates are feeling the burden to pay additional taxes for cross-affiliate deals. So we will review the possibility to find ways to lessen the burden,” the minister said.
In a separate session, Minister of Science, ICT and Future Planning Choi Moon-ki said the ministry will play a role as a coordinator to connect small firms to large firms.
“As we need technology innovation and creation, spending on R&Ds will account for 40 percent out of the total annual budget this year,” Choi said.