By Lee Hyo-sik
Staff reporter
The government said Wednesday that it will provide small firms with more funds this year to help them purchase oil and other raw materials amid surging costs. It is also planning to increase the release of aluminum and other nonferrous metals from government stock to help stabilize prices of vital metals.
After an economy-related ministers' meeting, presided over by Strategy and Finance Minister Kang Man-soo, the government unveiled these and other measures, aimed at helping small- and medium-sized enterprises tide over financial difficulties as a result of surging oil and other commodity prices.
It is planning to provide small companies with 295 billion won this year to better enable them to secure raw materials for operations, up from the earlier 175 billion won. To help stabilize prices of nonferrous metals, it will increase the weekly release of aluminum, copper, nickel and other metals to 4,800 tons. Currently, it supplies 3,500 tons of such metals to the market every week.
The government will also provide incentives to encourage domestic steel makers to expand production capacity of construction iron rods and other steel products to 14 million tons per annum by 2012.
To secure a stable supply of oil and other key industrial minerals, the country is planning to initiate free trade agreement talks with resource-rich Middle Eastern countries and Australia as early as June.
The government will also readily reflect changes in prices of raw materials and pay more for products manufactured by small companies, while encouraging large firms to pay more for goods they get from smaller manufactures in accordance with surging raw material prices.
Also, at the meeting, the government decided to form a taskforce, including private experts, to find ways of improving the country's chronic service account deficit. It is planning to increase tax breaks and other incentives to golf courses and tourism hotels to attract more local tourists.
The government is also reportedly considering making it easier for the construction of golf courses and theme parks here. It will unveil a comprehensive package of measures on March 28, aimed at improving the competitiveness of the country's leisure and other services sectors.