Overseas Subsidiary Shares of Just 10% Now Eligible for Loans (Update)

Ministry of Economy and Finance and Ministry of Land, Infrastructure and Transport to Hold External Economic Ministers' Meeting on the 5th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government has decided to ease the support requirements for overseas business investments. The minimum equity holding requirement for Korean companies' overseas subsidiaries will be significantly relaxed from the existing 10-51% to 10%. Additionally, a preferential interest rate of up to 1 percentage point will be provided for key policy sectors such as eco-friendly and infrastructure projects.

On the 5th, the Ministry of Economy and Finance, the Ministry of Land, Infrastructure and Transport, and other related ministries held an External Economic Ministers' Meeting and announced the "Measures to Revitalize and Advance Overseas Orders," which include these details. The government plans to strengthen policy support to boost overseas order performance.

By the end of this year, the government will establish an investment policy fund worth 1.5 trillion KRW for global plant, infrastructure, and smart city (PIS) sectors. Furthermore, an additional 1.5 trillion KRW will be supported based on investment performance. To support the discovery of investment projects for the policy fund, the Ministry of Land, KIND (Korea Overseas Infrastructure & Urban Development Corporation), and fund management institutions will participate in quarterly regular meetings.

Vaccination eligibility will be expanded and support procedures simplified for necessary business personnel involved in overseas construction orders and contracts. In particular, for urgent business trips requiring attendance at important events, a vaccination fast-track system will be introduced to reduce the time from application to completion from 3 months to within 1 month.

The government will also strengthen Korea-US cooperation to create opportunities for Korean companies to enter the US construction market.

First, the 2nd Korea-US Infrastructure Working Group will be held within the year to discuss strengthening infrastructure cooperation and strategies for entering the US market. They also plan to select pilot projects for joint entry into third countries such as Asia and Latin America with the US side. A private sector roundtable will be held within the year and regularized.

To establish a foothold for entering the US market, a local support team will be newly established to investigate US infrastructure policies, systems, and prospects, and support project discovery through cooperation with business partners and multilateral development banks.