S.Korea aims to expand tax cuts on energy projects

SEOUL, Sept 27 (Reuters) - South Korea's energy ministry is pushing to expand tax cuts for local companies investing in overseas energy projects, a proposal that would encourage firms to seek stakes in major oil and gas fields abroad.

Currently, the government offers tax breaks only for equipment purchases and facility construction.

The new proposal, which awaits final approval by the National Assembly, will expand tax cuts to include purchases of stakes in fields that are already producing or under exploration, the ministry of Commerce, Industry and Energy (MOCIE) said in a statement.

The change will take effect for three years from January next year if approved by the National Assembly this year, the ministry said.

South Korean firms have been active in securing energy reserves abroad as the country is heavily dependent on foreign energy sources.

South Korea's major refiners including SK Energy (096770.KS) have been active in securing crude and gas reserves in the Middle East and Central Asia, while the state-run Korea National Oil Corp (KNOC) led many consortiums in securing stakes at major producing oil fields.