Business Reforms in Korea, Rep.

Positive= Doing Business reform making it easier to do business. Negative= Doing Business reform making it more difficult to do business.

DB2013:

Positive Protecting Investors:

Korea strengthened investor protections by making it easier to sue directors in cases of prejudicial related-party transactions.


Positive Paying Taxes:

Korea made paying taxes less costly for companies by reducing the profit tax rate.


Positive Resolving Insolvency:

Korea expedited the insolvency process by implementing a fast track for company rehabilitation.


Positive Getting Electricity:

Korea made getting electricity less costly by introducing a new connection fee schedule and an installment payment system.


DB2012:

Positive Starting a Business:

Korea made starting a business easier by introducing a new online one-stop shop, Start-Biz.


Positive Paying Taxes:

Korea eased the administrative burden of paying taxes for firms by merging several taxes, allowing 4 labor taxes and contributions to be paid jointly and continuing to increase the use of the online tax payment system.


Positive Enforcing Contracts:

Korea made filing a commercial case easier by introducing an electronic case filing system.


DB2011:

Positive Resolving Insolvency:

Korea made it easier to deal with insolvency by introducing postfiling financing, granting superpriority to the repayment of loans given to companies undergoing reorganization.


DB2010:

Positive Starting a Business:

Korea simplified the business start-up process by removing the minimum capital requirement, removing the notary role, cutting taxes, putting time limits on VAT registration and making registration payment on-line.


Positive Paying Taxes:

Korea has reduced the burden on business by accelerating its corporate income tax reduction programme from a 5-year programme to a 3-year programme. The top rate will be cut from 25% to 20% by 2010.


DB2009:

Positive Trading Across Borders:

Upgrading the EDI system decreased export and import time.


Reform Summaries


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