"Strengthening Competitiveness Across the Entire Semiconductor Ecosystem"
As the K-Chips Act (Amendment to the Restriction of Special Taxation Act), which focuses on expanding tax support for facility investments in national strategic industries including semiconductors, passed the National Assembly plenary session, the business community and industry collectively welcomed it. However, there are also voices expressing regret that large corporations were excluded from the extension of the temporary investment tax credit.
On the 27th, the partial amendment to the Restriction of Special Taxation Act was passed at the plenary session of the National Assembly. Yonhap News
Lee Sang-ho, Head of the Economic and Industrial Division at the Korea Economic Association, stated on the 27th, "The economy is facing unprecedented uncertainty due to strengthened protectionism following the inauguration of the new U.S. administration and intensified geopolitical risks." He added, "The passage of the K-Chips Act will provide a lifeline to the industry and serve as a catalyst to overcome the current crisis." He further noted, "In particular, the expansion of tax credits for semiconductor production facilities and national strategic technology research and development (R&D) facilities is expected to become a foundation for our companies to grow into global technology leaders."
Lee said, "The extension of the temporary investment tax credit will also help improve the cooled investment sentiment among companies," but he pointed out, "It is very regrettable that the target is limited to small and medium-sized enterprises and mid-sized companies." He added, "Since investment momentum has weakened regardless of company size, I hope that universal support measures will be considered."
The semiconductor industry also issued a welcoming statement. The Korea Semiconductor Industry Association said, "This bill will play an important role in enabling our semiconductor companies to secure a global advantage in the future semiconductor industry amid increasing global uncertainties," and stated, "The expansion of manufacturing and R&D tax credit rates will strengthen semiconductor manufacturing competitiveness and accelerate the acquisition of next-generation technologies, leading to enhanced technological competitiveness across the entire semiconductor ecosystem."
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