Gov¡¯t decides to launch special task force to expedite reforms

The government has decided to create a pan-governmental special support team to conclude restructuring within this year.

The government also decided to reduce taxes related to the purchase of homes such as the capital gains tax, registration tax and acquisition tax.

These new policies were reported Tuesday to a meeting of major government agencies, including the Ministry of Finance and Economy(MOFE), on the 12 core tasks for reforms in four sectors. President Kim Dae-Jung presided over the session.

A MOFE official said that officials from related ministries would create a special task force to deal with new economic issues.

The team would take measures for capital markets, orchestrating relations with bond and financial institutions, examining legal affairs concerning the expulsion of insolvent companies, and supporting for workplaces abroad and labor-management relations, the official explained.

In order to boost the ailing construction industry in provincial regions, the government will reduce or exempt taxes and public utility charges to cut down on expenses for house purchases and develop new towns in some districts where there are signs of random land development.

The government will also seek to build rental homes in large cities in provincial regions that have a relatively low rate of housing.

As a means of revitalizing the distribution business in rural areas, the government will promote the redevelopment or repair of conventional markets and will work out countermeasures to prevent traditional rural retail businesses from being threatened by big retail companies.

At the same time, the government will seek the legislation of a ¡°Basic Law on the Corporate Burden¡± in order to reduce the quasi-taxes on businesses, the official said.