South Korea’s Yoon offers tax breaks if Musk builds car factory

SOUTH Korean President Yoon Suk Yeol offered tax breaks and manpower support if Tesla CEO Elon Musk invests to build a new factory in the country.

Yoon met on Wednesday (Apr 26) with Musk, who is also the chief executive officer of SpaceX, as part of the South Korean leader’s visit to Washington, according to Yoon’s office. Earlier in the day, he held a summit at the White House with President Joe Biden to tighten economic and security cooperation.

Musk told Yoon that South Korea remains among the top candidates to host a new Tesla factory and he anticipates a chance to visit. Musk also said the country is an “interesting” target of investment for Tesla’s gigafactory, according to Yoon’s office.

The two had a virtual meeting in November last year when Musk said he would make any investment decision after a comprehensive review of conditions, including around manpower and technology.

Yoon also expressed hope to Musk that South Korean businesses would expand cooperation with SpaceX for space exploration, his office said. Yoon is pushing to bolster the nation’s participation in the space race.

South Korea is home to two of the world’s biggest automakers, Hyundai Motor and Kia, as well as other battery makers such as SK On and Samsung SDI. The nation sees electric vehicles, rechargeable batteries and spacecraft as key growth drivers of its economy. BLOOMBERG