The Committee for Promotion of Korea as Northeast Economic Hub, a Presidential organization led by chairman Bae Soon-hoon) plans to adopt a cash grant system that will provide up to 20% of the total investment amount for a business with cutting-edge technologies. The plan was suggested at a meeting of the Committee participated by President Roh Mu-hyun on June 5.

A Committee official said, “The similar incentives are taken in the U.K., Ireland and China based on foreign businesses’ investment plan. We decided it is necessary for us to follow suit in industries involving state-of-the-art technologies that will have considerable associated effects on domestic industry.

At the meeting, the Committee discussed methods of expanding incentives to attract more foreign direct investment and other details concerning adoption of the cash grant system, methods. The Committee is scheduled to present the “blue print for attraction of foreign direct investment” in the second half of 2003.