The South Korean government will temporarily expand tax benefits to corporate investment, the finance minister said Monday, in the latest move to encourage business spending amid a slowing economy.

Hong Nam-ki, minister of economy and finance, made the comments in a consultative meeting with officials of the ruling Democratic Party. Asia’s fourth-largest economy has been struggling to stimulate corporate investment, calling it a key to job creation.
Hong also said the tax benefits would also cover research and development spending on key industrial materials, parts and equipment, apparently as a means to reduce Korea’s reliance on Japanese materials and boost industrial competitiveness.
The move came as Japan imposed tighter regulations on exports to Korea of three materials -- resist, etching gas and fluorinated polyimide -- that are critical for the production of semiconductors and flexible displays. The restrictions reignited calls for efforts to push for localization of key industrial materials, components and equipment.