South Korea’s new president gets it. Lee Myung-bak was elected on a platform of lower tax rates to increase growth from last year’s 4.9% to 7% per year. You can read about it by clicking here.
South Korea plans to achieve economic growth of about 6 percent this year through measures including corporate tax cuts, the Ministry of Strategy and Finance said Monday. The country’s economy grew 4.9 percent last year.
“The new government will work to resuscitate the economy and manage risks to achieve around 6 percent growth this year,” the ministry said in its economic blueprint report for 2008.
Former construction executive and mayor of Seoul Lee Myung-bak took office as South Korea’s president last month, vowing to boost the economy.
The growth target is higher than the 4.8 percent forecast for this year by the government of former President Roh Moo-hyun. The ministry said it will stimulate growth by implementing a series of tax cuts to encourage corporate investment as well as research and development. For example, it plans to increase tax waivers for companies that invest in research and development facilities.
The government will also seek to lower the corporate tax – now between 13 percent and 25 percent – to a range of 10 percent to 20 percent by 2013. “The new government will faithfully execute its policy agenda within the administrative term to transform the country’s economy with a capability to grow 7 percent,” the report said.
Lee was elected largely on his vow to boost the economy, which he says can grow 7 percent a year through measures including deregulation and an increase in foreign investment.
Now, imagine that you are a global investor who has just listened in on one of our presidential debates. Where would you put your money? In today’s world you have to compete for the capital you need to grow your people’s incomes. We need to geet this right.