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S.Korea to offer tax help, loans to firms hit by China trade measures
September 28, 2017 / 1:00 AM / a month ago

S.Korea to offer tax help, loans to firms hit by China trade measures

SEOUL, Sept 28 (Reuters) - The South Korean government will offer tax concessions and loans to companies affected by trade measures China imposed on South Korea businesses in retaliation against Seoul’s deployment of a powerful defence system, the finance ministry said on Thursday.

The government plans to allow duty free operators and other retailers operating in China to defer all or part of their corporate income and value-added taxes for up to nine months.

The ministry added it will offer cheap loans to auto-component makers hit by declining sales in China of vehicles made by Korean companies such as Hyundai Motor Co.

The loans would be made through policy financing using funds at state-supported institutions including the Export-Import Bank of Korea and Korea Trade Insurance Corp.

The measures announced on Thursday also include plans to boost domestic tourism, as the number of inbound Chinese tourists has been falling since Seoul decided to station a U.S. missile shield known as the Terminal High Altitude Area Defense (THAAD).

Reporting by Cynthia Kim

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