[Asia Economy Sejong=Reporter Kim Hyewon] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced plans to unveil semiconductor tax support measures within this week.
On the 1st, Deputy Prime Minister Choo visited Korean Air's Cargo Terminal 1 at Incheon Airport at midnight to inspect the loading of semiconductor-related export cargo on the first national cargo flight of the new year to Xi'an, China, and spoke to the press afterward.
Choo said, "The President pointed it out, so we immediately began reviewing it," adding, "We plan to announce what kind of tax support will be provided within this week."
Regarding specific measures, he said, "We need to finalize consultations with related ministries," but added, "It seems necessary to increase the investment tax credit rate compared to now."
He continued, "The (tax credit rate) should basically be in double digits," and added, "We need to raise the investment tax credit for national strategic industries such as semiconductors."
Earlier, the government passed a tax reform bill in the National Assembly to raise the facility investment tax credit rate for large corporations in national strategic technologies such as semiconductors, batteries, and vaccines from 6% to 8%.
However, President Yoon Suk-yeol recently instructed the Ministry of Economy and Finance to consider additional expansion of tax support for national strategic industries.
After listening to the status of international cargo handling at Incheon Cargo Terminal on the same day, Deputy Prime Minister Choo extended New Year's greetings and words of encouragement to workers and company officials working at the export site.
The Ministry of Economy and Finance explained that this site visit was arranged to examine the export site, which is the backbone and foundation of the Korean economy, and to seek ways to expand exports amid expectations that the difficulties of the Korean economy will continue for a considerable period due to the full-scale onset of overseas complex crises this year.
At the event, Deputy Prime Minister Choo mentioned, "Although exports recorded an all-time high annual export amount due to a strong increase in exports in the first half of last year, exports turned to a decline after October and are expected to decrease by 4.5% this year due to global trade and semiconductor industry downturns, indicating a difficult situation."
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