National Assembly Passes 'Three Energy Laws' Welcomed
"Prompt Legislation of the Semiconductor Special Act Requested"
The Korea Employers Federation (KEF) expressed its welcome on the 27th regarding the passage of the 'Partial Amendment to the Restriction of Special Taxation Act,' known as the K-Chips Act, through the plenary session of the National Assembly.
In a statement released that day, KEF said, "The amendment will contribute to promoting investment and expanding infrastructure in advanced fields such as semiconductors and artificial intelligence (AI), where global hegemony competition is fierce, thereby enhancing industrial competitiveness. It will also help revitalize our economy, which is experiencing entrenched low growth."
The amendment focuses on expanding tax incentives for domestic advanced industries, including extending the sunset clause for tax credits on national strategic technology investments, broadening the scope of national strategic technologies, and raising the tax credit rate for semiconductor investments. Accordingly, the tax credit rate for facility investments by semiconductor companies will increase by 5 percentage points from the previous rates to 20% for large and medium-sized enterprises and 30% for small and medium-sized enterprises. The National Assembly also passed the 'Special Act on Expansion of National Power Grid,' one of the three energy-related laws supporting the expansion of power grids necessary for advanced industries.
KEF stated, "We ask the government and the National Assembly to continue to pursue more bold measures and legislation so that our companies can compete under conditions that are not disadvantageous compared to competing countries. In particular, we hope the National Assembly will promptly legislate the 'Special Act for Strengthening Competitiveness and Innovative Growth of the Semiconductor Industry (Semiconductor Special Act),' which supports subsidies and relaxes labor hour regulations." They added, "Companies will also strive to overcome the crisis and achieve economic re-leap through investment and job creation despite difficult circumstances."
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