Policy maker eyes tax breaks for venture startups in S Korea

Deputy Prime Minister and Finance Minister Choo Kyung-ho has disclosed plans to help facilitate investments in cash-strapped venture startups in South Korea, suggesting hefty tax benefits for both corporate and individual investors. Choo pointed to the situation whereby the private sector’s investments in startups have contracted in the wake of externally and domestically unfavourable factors in the economy. The Finance Ministry said it would provide local corporations investing in the sector with a tax deduction of 5% of the investments. It added the corporations would enjoy additional tax breaks as well. It said that individuals will enjoy an income tax deduction by 10% of their investments as well as an exemption from capital gains tax when they sell off stake in the startups.