Korea Semiconductor Industry Association Statement Release
[Asia Economy Reporter Kim Pyeonghwa] The semiconductor industry has welcomed the government's announcement to raise the tax credit rate for semiconductor investments by large corporations from the existing 8% to 15%. The government plans to prepare a revision of the Restriction of Special Taxation Act, including this plan, within this month and push for its passage through the National Assembly.
On the 3rd, the Korea Semiconductor Industry Association issued a statement saying, "We welcome the government's announcement today regarding the 'Additional Expansion of Tax Credits for Investments in National Strategic Technologies such as Semiconductors.'"
The Korea Semiconductor Industry Association emphasized, "The government's additional expansion of the tax credit rate for facility investments will be a great support for the domestic semiconductor industry, which must quickly prepare to respond in the global semiconductor war," adding, "It will serve as a strong driving force for large-scale manufacturing facility investments by large corporations and further greatly expand investments by domestic small and medium-sized enterprises in materials, parts, and equipment, thereby firmly supporting the ecosystem of our semiconductor industry." They also added, "It will have a positive ripple effect on employment in related upstream and downstream industries."
The Korea Semiconductor Industry Association stated that the domestic semiconductor industry will continue to make its best efforts with a sense of mission to become a global leading company. The association requested, "We ask for the National Assembly's support so that the legislation to raise the tax credit rate announced today can be smoothly enacted as soon as possible to promptly support the expansion of private investment," and added, "If there are signs of a decline in the competitiveness of our semiconductor industry, we hope for proactive and active support going forward."
The Ministry of Economy and Finance announced on the same day a plan to expand tax credits to revitalize investments in national strategic technologies such as semiconductors. Although the Restriction of Special Taxation Act revision, part of the K-Chips Act, passed the National Assembly last month, raising the investment tax credit rate for large corporations from 6% to 8%, there were continuous criticisms that it was insufficient compared to global standards. The Ministry of Economy and Finance plans to prepare a new revision of the Restriction of Special Taxation Act this month to increase the credit rate to 15% for large and medium-sized corporations and up to 25% for small enterprises. This year, they will also temporarily raise the additional tax credit rate for increased investments from 4% to 10%.
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