W1 Tril. Fund to Be Set Up for Startups
By Yoon Ja-young
Staff Reporter
The government said it will raise a one trillion won fund to help innovative small- to mid-sized enterprises (SMEs) involved with technology in their incubatory stages.
``The ministry has decided to set up a fund to financially support innovative hi tech small firms,'' said Finance & Economy Minister Kwon O-kyu, at a meeting with CEOs of SMEs based in Yongin, Gyeonggi Province, Wednesday.
Kwon said it was part of the second phase of a plan to improve the business environment. The government will announce details of the plan next week.
He added that it involves financial support and investment in small tech startups, rationalizing regulations on business sites, easing regulations on manpower and logistics, rationalization of taxation and improvement of legal procedures.
Kwon said the restrictions on locating businesses near water reservoirs was too strict, but that it would take some time for the Ministry of Environment to complete an examination of this.
Recently, the government refused to allow Hynix Semiconductor to expand its production lines in Icheon, Gyeonggi Province because of possible water pollution.
Regarding the small business owners' complaint over high inheritance and gift tax rates, Kwon said these should not be a burden on those who takeover family businesses.
``The ministry will prepare a revision bill on these taxes to hand in to the National Assembly this year,'' the minister said.
He added that there should be further consideration on the adequate level of tax cuts, as there exists negative perspective on those who don't share the burden while inheriting an enormous amount of wealth.