S.Korea aims to expand tax cuts on energy projects

South Korea’s energy ministry is pushing to expand tax cuts for local companies investing in overseas energy projects, a proposal that would encourage firms to seek stakes in major oil and gas fields abroad.

Currently, the government offers tax breaks only for equipment purchases and facility construction.
The new proposal, which awaits final approval by the National Assembly, will expand tax cuts to include purchases of stakes in fields that are already producing or under exploration, the ministry of Commerce, Industry and Energy (MOCIE) said in a statement.

The change will take effect for three years from January next year if approved by the National Assembly this year, the ministry said.

South Korean firms have been active in securing energy reserves abroad as the country is heavily dependent on foreign energy sources.

Reuters