South Korea prepares support for compact businesses, tax cuts for corporations

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SEOUL (Reuters) – South Korea’s government has prepared financial support for compact businesses and tax cuts for companies raising capital returns for shareholders, President Yoon Suk Yeol said on Wednesday.

Yoon was delivering a televised speech ahead of the government’s two-year economic policy announcement due on Wednesday.

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The government has prepared a total of 25 trillion won ($18 billion) to support compact businesses that are struggling due to high interest rates, Yoon said.

The announcement will also include tax breaks for companies that boost dividend payouts under the government’s “Enterprise Value Growth Program,” which aims to boost the country’s stock market.

Yoon said consumer prices in Asia’s fourth-largest economy were stabilizing as headline inflation fell for a third straight month and foreign investment inflows looked solid.

After Yoon’s speech, Finance Minister Choi Sang-mok said the ministry had raised its economic growth forecast for this year to 2.6% from the 2.2% previously forecast.

(1$ = 1,388.9400 won)

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