Home / Knowledge / News / Textiles / Korean govt revises Foreign Investment Promotion Act
Korean govt revises Foreign Investment Promotion Act
03
Jan '14
The National Assembly of South Korea has passed a long pending bill for revision of the Foreign Investment Promotion Act, which would enable subsidiaries of big companies to set up joint ventures with foreign capital.
 
As per the revised Act, the shareholding limit of a subsidiary company in a sub-subsidiary company has been decreased to 50 percent from the earlier 100 percent.
 
This is expected to allow up to 50 percent of the investment by foreign companies in new joint ventures of subsidiary companies, and further facilitate large-scale corporate investment in the country.
 
The passage of the revised Act will immediately allow SK Global Chemical and GS Caltex to speed up their paraxylene (PX) projects that involve joint venture with foreign firms.
 
SK Global Chemical signed a memorandum of understanding with Japan-based JX Nippon Oil & Energy in 2011 for constructing a 1 trillion won chemical plant in Ulsan. Similarly, GS Caltex reached an agreement with Japanese oil refiner Showa Shell Sekiyu in 2012 for setting up a 1 trillion won joint venture project in Yeosu, South Jeolla province.
 
Now, that the revised Act has been passed, these two projects are expected to be completed at a fast pace. Moreover, the revised Act is likely to encourage other subsidiaries of conglomerates to enter into joint ventures with foreign companies.
 
The South Korean Government is expecting that the revised law would attract more than 2 trillion won investment per annum and result in creation of about 14,000 new employment opportunities.
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search