Yumul, R-Saipan, sponsored House Resolution 16-62 which urges the Commonwealth Development Authority to deny granting additional tax breaks to Saipan Laulau Development Inc., a subsidiary of Kumho-Asiana.
The Variety was unable to contact Yumul yesterday.
Fitial described the resolution as “irresponsible,” adding that it will chase away potential foreign investors.
CDA’s qualifying certificate program entitles business entities to tax incentives like tax holidays, rebates or refunds and is designed to attract foreign investors to the tourism-based economy of the CNMI.
Fitial said Kumho-Asiana Group, the mother company of Asiana Airlines, is a major investor in the CNMI.
“This irresponsible resolution proposes to deny critical qualifying certificate investment incentives to the CNMI’s largest anchor investor, the Kumho-Asiana Group, at a very critical time for our economy. And I am gravely disappointed that such a reckless resolution could even be offered at this critical time,” Fitial said in a statement.
“The Korean won has weakened against the dollar and the South Korean stock market and banking and financial system have not been spared from the global financial meltdown and credit crisis,” he added.
Asiana said it will provide more flights between South Korea and Saipan in the months ahead and upon completion of the golf-resort next year.
South Korea is the second biggest tourism market of the CNMI after Japan.
