| |
| |
![]() |
| |
|
| |
|
| |
|
SEOUL: South Korea's government is considering tax cuts for automakers who are struggling with declining domestic and overseas demand, according to a minister.
Combined vehicle sales for local industry leader Hyundai Motor and four others fell 8.6 per cent year-on-year to 445,111 in November. Domestic sales fell 27 per cent while exports slipped 3.6 per cent.
"The government is pushing to adjust the special excise tax and environmental improvement charges levied on vehicles," Knowledge Economy Minister Lee Youn-Ho was quoted by Yonhap news agency as saying.
This is necessary to support sagging domestic demand and compensate for the drop in overseas orders, he said after an emergency meeting of economic ministers.
"Carmakers made specific recommendations on the need for tax cuts and details are being discussed with the finance ministry so they can be implemented as soon as possible," Lee said.
Meanwhile, the minister said talks between creditor banks and Hynix Semiconductor, the world's number two memory chipmaker, are going well and some form of understanding is likely.
"While Hynix is suffering, it is still doing better than foreign rivals," Lee said.
He said the government has a contingency plan if talks between Hynix and its creditors fall through. But active support was not being considered since this would breach World Trade Organisation guidelines.
Creditors are considering ways, including financial support, to help the chipmaker, lead creditor Korea Exchange Bank said separately.
"Hynix has asked for creditor-led financial assistance," said Youn-Gu Lee, a bank spokesman. "Usual support measures include new loans and a possible rights offering but nothing has been decided yet."
Hynix is not in need of a speedy cash injection, he said.
Minister Lee said the government has set up a three-tier warning system to check the health of nine key industries - autos, shipbuilding, petrochemicals, semiconductors, steel, textiles, displays, mobile phones and general machinery.
"The green, amber and red warning system will check the health of individual industries so the government can implement emergency measures if the need arises," Lee said.
- AFP/yb
|
