Choo Kyung-ho: "SMEs Can Get Up to 28% Tax Credit on Facility Investment This Year... Please Actively Invest"

Emergency Economic Ministers' Meeting and Export Investment Measures Meeting
Asia's First NEOM City Investment Briefing to be Held in Q3
Green Industry Strategy to be Announced Soon

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced on the 21st, "If small and medium-sized enterprises received a maximum tax credit of 15% for facility investments last year, this year they can receive up to a 28% tax credit through the temporary investment tax credit."

On the same day, Deputy Prime Minister Choo made these remarks while presiding over the 'Emergency Economic Ministers' Meeting and Export Investment Measures Meeting' at the Government Seoul Office.

Deputy Prime Minister Choo stated, "We have significantly expanded tax incentives for corporate investments by amending the Restriction of Special Taxation Act to greatly increase tax credit benefits for national strategic technologies such as semiconductors and reintroducing the temporary investment tax credit," adding, "Although domestic and international conditions are challenging, I urge companies to actively take advantage of this opportunity to invest."

This year, the temporary investment tax credit is applied on a temporary basis, providing higher tax credit benefits for corporate investments not only in specific industries such as semiconductors but across all industries, with the benefit allowing a carryforward deduction for up to 10 years.

He explained, "Although exports of some items such as automobiles and ships are generally showing favorable trends, the overall decline in IT items including semiconductors has led to a continued decrease in exports, resulting in a trade deficit since October last year," and emphasized, "The government will continue to focus all policy capabilities on a swift export rebound."

On the same day, the government also discussed measures to resolve major difficulties in export sites and response plans. Since November last year, the government has been operating the 'One-Stop Export and Order Support Team' to quickly resolve difficulties at frontline export sites in one place. So far, in cooperation with industry associations and groups, a total of 402 difficulties have been identified, with 320 resolved promptly. Additionally, key institutional improvements such as simplifying used car export procedures and expanding electronic customs clearance for core industry parts are actively being pursued.

Deputy Prime Minister Choo said, "Starting in May, we will launch 'One-Stop Export 119,' a joint government initiative to directly visit export sites to inspect and resolve difficulties," adding, "We will closely support the entire process of companies' overseas project orders and focus on expanding export channels by holding overseas briefings for promising export companies."

They also reviewed the performance of the One Team Korea operation and plans to expand orders. Through the 'Overseas Infrastructure Order Activation Strategy' announced in August last year, the government aims to achieve $50 billion in annual orders by 2027 and enter the world's top four overseas construction powers. To this end, One Team Korea, involving various industries such as construction, mobility, and IT, has been dispatched to key overseas construction cooperation countries such as Saudi Arabia and Indonesia to establish a cooperative foundation for expanding orders.

Deputy Prime Minister Choo explained, "We will hold the first exhibition and investment briefing related to Saudi Arabia's mega future city construction project, the 'NEOM The Line Project,' in Asia for the first time in Seoul during the third quarter," and added, "We will strengthen cooperation with major countries in the Middle East and ASEAN regions to fully support turning this into tangible order achievements in areas such as smart cities, metros, and plants."

To promote the overseas expansion of the green industry, the government plans to support large-scale project orders considering regional conditions and establish order strategies jointly with the private sector and government through the Green Industry Alliance and Green Industry Order Support Team. Furthermore, the government intends to invest 10 trillion won by 2027 in developing core green technologies and nurture 180,000 green industry specialists, thereby building a foundation for green industry innovation. A detailed strategy for this will be announced soon.

To drive innovation and growth in digital new technologies, the government will also focus on supporting the globalization of the software industry, workforce development, and technology acquisition. Deputy Prime Minister Choo said, "We aim to nurture 250 software companies leading the global market with a target of $17.2 billion in software and ICT service exports by 2027," adding, "We will also accelerate securing future technologies such as developing system software used to improve the performance of innovative products like AI semiconductors, mobility, and autonomous driving robots."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is presiding over the 'Emergency Economic Ministers' Meeting and Export Investment Measures Meeting' held at the Government Seoul Office in Jongno-gu, Seoul on the 21st, delivering opening remarks.