Semiconductor Academia Urges Swift Passage of Tax Credit Amendment Bill in National Assembly

The ruling and opposition parties have agreed to attempt to pass the Semiconductor Special Act (Restriction of Special Taxation Act) on the 16th, which includes an additional increase in the tax credit rate for semiconductor facility investments. Meanwhile, the domestic semiconductor academic community issued a statement urging the National Assembly to pass the revised tax credit bill for the semiconductor industry.

On the 8th, 333 members from four semiconductor-related academic societies?the Korean Institute of Electrical Engineers, the Korean Society of Microelectronics and Packaging, the Korean Semiconductor Display Technology Society, and the Semiconductor Engineering Society?stated in their declaration, "We urge the prompt passage in the National Assembly of the amendment to the Restriction of Special Taxation Act, which includes the revision of the tax credit rate for semiconductors and other national advanced industries, proposed by the government last January," and added, "The ideological notion that supporting the semiconductor industry is a special privilege for large corporations or a tax cut for the wealthy must stop."

They further explained that the current semiconductor industry in Korea is in a precarious situation, like a candle flame flickering in the wind, uncertain when it might be extinguished. The statement said, "The semiconductor industry is being reexamined from the perspective of national security, and major competing countries are not hesitating to provide national support while promoting the localization of their semiconductor industries," adding, "The participation of semiconductor pioneer countries such as the United States, Europe, and Japan, which once dominated memory semiconductor technology supremacy, in the global semiconductor war presents an unprecedented threat in semiconductor history."

Meanwhile, the ruling and opposition parties will hold a tax subcommittee meeting of the National Assembly's Planning and Finance Committee on the 16th to attempt to reach an agreement on the amendment to the Restriction of Special Taxation Act. If a smooth agreement is reached in the tax subcommittee, it is expected that the bill will be processed at the plenary session scheduled for the 30th after passing the full committee meeting on the 22nd. The government proposal submitted to the National Assembly last January includes raising the tax credit rate for facility investments in national advanced strategic technologies such as semiconductors from the current 8% to 15% for large and medium-sized enterprises, and from the current 16% to 25% for small and medium-sized enterprises.