[THE INVESTOR] South Korea’s investment environment -- with its speedy administrative process and low corporate tax rates -- is mostly favorable to foreign companies, a report showed Aug.4.
However, sluggish population growth and the relatively low level of policy transparency serve as hurdles to foreign investment, according to the report by the state-run Korea Trade-Investment Promotion Agency.
The report compares the market environments, managerial climates and investment policies in 17 advanced countries and 15 emerging economies, which are known to influence foreign direct investment.
According to the findings, it takes an average four days to establish a company in South Korea, the fifth-shortest period among the 32 countries. South Korea also scored well in the time needed for construction permits and export and import clearance.
South Korea’s corporate tax rate stands at 33.2 percent, the fourth-lowest after Canada’s 21.1 percent, 25.9 percent in Ireland and 32 percent in Britain.
South Korea also scored high in such categories as per capita purchasing power and economic growth rate for the past four years. But the report cited South Korea’s lack of policy transparency and low population growth as unfavorable factors.
