President Kim Dae-Jung on Thursday promised to offer drastic tax incentives for foreign businesses operating in South Korea's free trade zones.
The offer was made as Kim attended a ground-breaking ceremony for the construction of a new free trade zone in the western port of Kunsan.
Kim said in a speech the government would set up a panel to address complaints from foreign firms in free trade zones.
Foreign companies in the zones will be free from income and corporate taxes for the next seven years and also enjoy 50-percent tax cuts for another three years after that, he said.
He also promised 100 percent cuts in registration and sales taxes for foreign firms in the zones over the next 15 years.
Officials said the government plans to open a new free trade zone in Kunsan in 2003.
South Korea already has two other such zones, both set up in the 1970s, in the southeastern port of Masan and the southwestern city of Iksan.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)