‘Foxconn’s US investment budget may rise to U$30b’
The government wants to raise more revenue to cover rising social welfare costs as a rapidly ageing population creates long-term problems for South Korea’s economy.
South Korea is set to become a super-aged society by 2026, and has the fastest-rising average age among the Organisation for Economic Co-operation and Development countries.
A super-aged society refers to nations where people of 65 years or older make up at least 20 per cent of population, according to the United Nations.
Boosting household income is also an urgent task for the Moon administration, as wages have failed to keep up with corporate earnings.
Household income as a proportion of aggregate corporate income fell to 62.1 per cent last year and has fallen steadily from 69 per cent in 1995, government data shows.
The ratio of household debt to disposable income is rocketing towards 190 per cent, as weak income growth pushes Koreans to borrow more for housing and living expenses.
The government is counting on an 11 trillion won supplementary budget approved last month to support private consumption this year as corporate income failing to flow to households drags on growth.
To fund such spending and reduce income inequality, the government plans to broaden its revenue base by taking more from the affluent and less from the poor.
An income tax rate of 42 per cent will kick in on personal earnings exceeding 500 million won a year starting next year, up from 40 per cent currently. Reuters earnings in the first half, has been on a roller coaster ride this year, with prices trading between US$53 and US$95 a tonne and now just under US$74.
Rio Tinto’s full-year dividend is typically weighted towards the BEIJING: Foxconn chairman Terry Gou is considering tripling his United States investment budget to US$30 billion (RM128.54 billion), said President Donald Trump while outlining “offrecord” remarks made by the billionaire founder of Apple Inc’s biggest manufacturing partner.
Foxconn Technology Group, the main assembler of the iPhone, unveiled last week plans to build a US$10 billion display plant in Wisconsin, hiring as many as 13,000 people for a project Trump touted as a victory for his “America First” effort to brings jobs back to the US. That was just the beginning, the president told small-business leaders during a gathering at the White House on Tuesday.
“They’re going to spend US$10 billion. But he is one of the great businessmen of our time,” said Trump. “And I think the number is going to be US$30 billion.”
“He told me off the record he thinks he may go US$30 billion. Think of this. He may go US$30 billion investment, but he told me that off the record so I promised I wouldn’t tell anyone,” he said to laughs from the audience. Bloomberg second half, which could see an even greater payout, given the company is scheduled to receive payment of US$2.69 billion for the sale of its coal & Allied division in Australia to Yancoal Australia. Reuters
South Korea’s President Moon Jae-in ruling Democratic Party may face parliamentary approval test as it only holds 40 per cent of the 299 seats in the National Assembly.