"Additional Investment Tax Credits for Hydrogen and Future Cars" Opposition Proposes Korean Version of IRA Act

Park Hong-geun, floor leader of the Democratic Party of Korea, said on the 15th, "We will propose the bill to expand the investment tax credit for national strategic technologies (Special Tax Treatment Control Act) and the Carbon Neutral Industry Promotion Act, the so-called ‘Korean version of the IRA Act’."

At the Democratic Party’s Supreme Council meeting that day, Floor Leader Park said, "In the economic crisis including the semiconductor industry, it is more important than anything for the ruling and opposition parties to join hands."

Park Hong-geun, floor leader of the Democratic Party of Korea, is speaking at the floor strategy meeting held at the National Assembly in Yeouido, Seoul on the 14th. Photo by Hyunmin Kim kimhyun81@

He explained, "The Democratic Party accepted the additional investment tax credit for semiconductors despite policy confusion and concerns about tax revenue reduction caused by the government and the ruling party, in order to fulfill its responsibility and role as a competent alternative party for the economy and people’s livelihood. We went one step further by expanding the target not only to immediate semiconductor facility investments but also to new growth core strategic industries such as hydrogen, renewable energy, and future cars."

Floor Leader Park urged, "The government and the ruling party should reflect on their past incompetence and lack of measures and show a more responsible attitude before the people. The government should officially apologize for the confusion caused during the process of expanding the semiconductor investment tax credit and create a ‘trust environment’ where the ruling and opposition parties can work together to overcome the crisis."

He added, "I sincerely urge bipartisan cooperation so that the Democratic Party’s ‘Korean version of the IRA bill’ can be promptly processed."

The Special Tax Treatment Control Act was proposed by Shin Dong-geun, a Democratic Party member and the ranking member of the National Assembly’s Strategy and Finance Committee, and the Carbon Neutral Industry Promotion Act is expected to be proposed by Yang Yi-won-young, a Democratic Party member.