Democratic Party to Promote Tax Credits for Hydrogen Industry as Well as Semiconductors

Discussion on Expanding Semiconductor Tax Credits Held at Tax Subcommittee on the 16th

The Democratic Party of Korea generally agreed on the 13th to pursue measures to provide tax credit benefits not only for semiconductors but also for national advanced strategic industries such as secondary batteries, vaccines, displays, hydrogen, and future cars. The Democratic Party announced that it will discuss with the government and ruling party to push for the agreement and passage of related laws during the March extraordinary session of the National Assembly.

On the same day, the Democratic Party's Planning and Finance Committee held a 'Semiconductor Industry Issues Meeting' where they met with Samsung Electronics, SK Hynix, and the Korea Semiconductor Industry Association to hear opinions on semiconductor issues. After the meeting, Shin Dong-geun, the Democratic Party's Planning and Finance Committee whip, said, "Not all committee members fully agreed on the semiconductor tax credit, but the general opinion was that it would be appropriate to reach an agreement and handle it during the March extraordinary session."

Shin said, "Within the Democratic Party, there are demands to designate industries related to hydrogen and future cars in addition to secondary batteries, displays, and vaccines, which are already included in the national advanced industry tax credit."

Regarding the scope of the tax credit, he said, "We did not discuss detailed specifics, but generally talked about whether to increase or decrease the additional tax credit amount around the government's proposal; however, no exact percentage was decided."

The Planning and Finance Committee plans to hold a tax subcommittee meeting on the 16th to discuss amendments to the Restriction of Special Taxation Act that would expand tax credits for semiconductors and other industries.