South Korea to Ease Effects of China’s Trade Sanctions
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 defense system, the finance ministry said 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 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).