(2017, Jun) “Need to Expand Government Special Financing & Tax Support for Overseas Energy Resources Development”

[Today Energy – 2017.06.08]

Byeong-Wan Jang, Chairman of Council of Industry & Commerce Resources in National Assembly, and Korea Society of Mineral and Energy Resources Engineers(KSGE) held “The Changes of Global Energy & Resources Market and Energy Security Forum”at National Assembly Library Auditorium.

Si-Bo Ju, Vice President of POSCO, introduced development of Myanmar Gas Field and said that it is required for government to support overseas energy resources development.

He also stated that Energy Security is one of the most important objective for Korea because Korea imports more than 97% of energy resources from overseas market. “Overseas energy resources development business requires long term investment period including large scale of fund. Therefore it is necessary for government to provide continuing support to make successful investment.

Myanmar gas field is one of the successful overseas energy resources development in Korea. After getting drilling right from Myanmar government in 2000, $ 2.6 Billion had been invested in developing the gas field. This success could be led by government financing support.

Chul-Kyu Lee, Director of Energy & Mineral Resources Development Association of Korea, stated that it is required for government to increase special financing support to vitalize overseas energy development. “Firstly government must restore tax reduction plan and re-establish tax exemption policy for overseas resources development & investment tax. He also urges that government must revive deduction for investment tax policy.