October 7th Industry, Trade, and Energy Committee Audit
Anduk Geun, Minister of Trade, Industry and Energy, announced on the 7th, "We will proceed smoothly with the first phase drilling of the East Sea deep-sea gas field by the end of this year, and actively promote improvements to the royalty system and investment attraction."
On the same day, Minister Ahn stated at the National Assembly's Trade, Industry, Energy, Small and Medium Venture Business Committee audit, "We will promote domestic and overseas resource development to ensure stable supply of essential energy and resources."
The government is reviewing additional fiscal and tax support measures to promote overseas resource development investment, such as easing tax credit requirements for acquiring overseas mining rights. It is also considering incentives to revitalize domestic introduction, such as reducing import duties when domestic companies bring in resources produced through overseas resource development.
Specifically, through reforming the royalty system, the government is exploring ways to ensure that appropriate development profits are returned to the national treasury. Under the current system, the maximum royalty rate that the government can impose on developers is only 12%. Therefore, improvements to the royalty system are being pursued, including adjusting the royalty rate, establishing a special royalty system, and introducing a restoration cost reserve system.
Minister Ahn also announced plans to promote a major transition to carbon-free energy, including finalizing the 11th Basic Plan for Electricity Supply and Demand within the year. He emphasized, "In the nuclear power sector, we will complete the entire ecosystem by enacting the 'High-Level Radioactive Waste Special Act' and secure next-generation technologies such as Small Modular Reactors (SMRs) to enhance competitiveness. We will make every effort to finalize the contract for the Czech nuclear power plant, promote comprehensive economic cooperation between the two countries, and create additional achievements through all-out sales efforts."
The Ministry of Trade, Industry and Energy plans to steadily advance the structural upgrading of the entire industry and achieve the highest export volume ever. Minister Ahn said, "We will accelerate the creation of specialized advanced industry complexes, foster advanced talent, and expand financial and tax support to promote private investment. By the end of the year, we will mobilize all possible policy measures to achieve the highest export volume ever, including supplying a total of 370 trillion won in trade finance and supporting a record 10,000 companies in export exhibitions in the second half of the year."
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