Mining Info > Policy > Supporting System
 
 
Supporting System
The supporting devices are classified into assistance support, loan support, taxation support and insurance support. These system are for the purpose of encouraging development of overseas resources. Assistance support is divided into indirect assistance such as supply of investment information, resource information survey, surveys on the projects, and other basic surveys related to resources development and direct assistance such as exploration on the mines and propriety surveys in the form of funds and technology under the clause 10 of the law of overseas resources development projects.

For the loan support, the overseas resources development fund in KORES is available, which belongs to the government account established for promoting energy and resources industries.

The fund can support all applicant qualified by the clause 5 of the law of overseas resources development projects, which is characterized by a long term loan with low interest for maximum 15 years. In addition, there are some similar supporting systems, such as overseas investment funds in the Industrial Bank and economic cooperation funds in the Bank of Export and Import.

Taxation support is given by means of exemption from the corporation tax and from the income tax of dividends returned from the overseas resource development investment. Tax exemption also given to losses in preparation funds in overseas investments.

Insurance support are conducted by means of the insurance of overseas investments under the law of exports insurance (Clause 2 in article 6). Except for the losses in the preparation funds in overseas investments, the departure of WTO will have minimal effects on the supporting devices in overseas investments.

KORES is attempting to reduce the investment risks, to encourage private companies' overseas mineral development by introducing the success-condition loan regulation (Curtailing interest and principal of loan when the project is unsuccessful, but to bear interest and principal of loan and special contribution when successful) to the investigative operations which is expected to yield a high interest when successful, though it carries a high risk in the development of overseas mineral resources.