South Korean President Park Geun-hye urged her key policymakers and industry executives to come up with deregulatory policies and take risks by investing in technology for new businesses.

In a trade and investment promotion meeting presided over by the president at Cheong Wa Dae on Thursday, Park said that the time is ripe for the country to be aggressive and create new growth through creativity and technology.


“The very best way to spur investment and exports is to continuously pioneer in new markets with new products and services developed by creative minds, even if economic conditions are hard,” President Park said during the meeting Thursday.

Despite facing numerous difficulties ahead from corporate restructuring, the collapse of the European Union following Britain’s exit vote and the rise of protectionism, the president said the country cannot afford to sit idly by, but should move forward through open policies.

“Sensitive issues such as import regulations, tariff barriers and foreign exchange volatility are negatively affecting Korean exports. However, the country must turn the current crisis into opportunity by moving ahead with forward thinking and open economic policies,” she added.

“This can be done by using our strengths in developing quality products and services with creativity and technology.”

With the president stressing the importance of job creation through technology investments and deregulations, the Finance Ministry said that it seeks to further offer tax breaks for companies or investors investing in tech start-ups, as part of efforts to spur innovation and create new industries.

This also includes tax deductions for companies acquiring venture start-ups.

The government also seeks to reduce regulations for small and medium-size enterprises that look to acquire licenses to operate pet shops, as well as food and cosmetics businesses for Halal exports, as part of efforts to attract 3.6 trillion won ($3.1 billion) in investments from the private sector.

“We will develop the pet industry as a new business sector as it is expected to grow amid the low birth rate, an aging population and an increase in single-person households,” Finance Minister Yoo Il-ho told reporters.

“To ignite a second venture boom, the government will encourage more private investments in start-ups, and technology research and development so that ventures can not only expand globally, but also become the main growth driver of our economy,” the minister added.

New technologies such as virtual reality will be promoted and the government will also encourage more private investments in sports business, amid the increasing popularity of leisure activities.

By Park Hyong-ki (hkp@heraldcorp.com)