(1888PressRelease)
September 29, 2007 - South Korea is to increase tax benefits for companies which choose to invest in foreign mines and oil fields, it has been reported.
The country is heavily reliant on imports of energy and minerals, and the move can therefore be seen as an attempt to acquire more overseas resources.
A statement released by email from South Korea's Ministry of Commerce, Industry and Energy detailed that starting from January next year, shareholdings in overseas mines or oil fields secured by Korean backers would be subject to a tax reduction equivalent to three per cent of the total investment.
This would make mine and oil field tax legislation consistent with those concerning oil and mining facilities.
"We expect the new measure to encourage more companies to invest in foreign resources so that we can achieve our goal to boost our reserves in a shortened period of time,'' the statement said, according to Bloomberg.
Should the proposal be ratified in parliament the ruling will apply until the end of 2010.
Further analysis of the implications of the ruling could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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