Government Cuts off the Number of Companies That Should Submit a Combined Financial Statement

Government has decided to change the regulation of compulsory combined financial statement to other standard such as financial scale, starting from the first half of the next year. The combined financial statement was compulsory for branch companies of Jaebal group ranking under 30; and with this new regulation, the numbers of the companies, which should submit the combined financial statement, would be radically reduced.

Government also plans to allow the factory that belongs to the companies that produce computer, semiconductor, and communication equipment, into urban area to move into the National Capital region.

Government and the Democrats held a meeting on economic situation on the 27th at Yu-Ui Do building of the Democrats. And they decided to abolish 29 regulations invoking large-scale companies (companies under ranking 30). 10 items of 6 laws among 38 regulations including restriction on factory arrange, investment, stock investment, tax privilege will be also abolished.

Government had examined the financial management with the financial balance sheet thus far. And if they cut the number of the companies, it seems that other restrictions on finance would be also released.

Government also has decided to increase the limit of money to invest to other companies by companies ranking under 30 from one percent to seven percent. Along with this, it decided to abolish tax laws including the restrictions that prohibit inclusion of a share, restrictions to exclude minus interest that exceeds the standard debt and restrictions that regulate 15 percent of tax on the exceeding profit.

Besides this, government also has decided to expand or reform 7 laws and 7 items related to the laws on insurance and finance.

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