"10% Semiconductor Production Tax Credit"
Visit to SK Hynix Icheon Campus
Pledge for Swift Enactment of the Special Semiconductor Act
Visits to the Graves of Syngman Rhee and Park Chung Hee
"Unity" Mentioned 14 Times in Acceptance Speech
Lee Jae Myung, the presidential candidate of the Democratic Party of Korea, announced on the 28th that he would support semiconductor companies by applying a production tax credit of up to 10% for semiconductors produced and sold domestically. He also pledged the swift enactment of the Special Semiconductor Act.
Lee Jae Myung, the Democratic Party presidential candidate, is delivering his acceptance speech for the 21st presidential election candidates at KINTEX in Goyang City on the afternoon of the 27th. Photo by Kang Jinhyung
On his social networking service (SNS) account that day, Lee stated, "Semiconductors are a representative capital-intensive industry that requires massive investment, and once a gap emerges, it is difficult to catch up," pledging to strengthen tax benefits.
The production tax credit is a system that deducts a portion of the taxes paid on semiconductor products produced and sold in Korea, directly supporting companies' productivity and sales performance. Industry insiders expect that the introduction of this system will increase incentives for domestic investment by semiconductor companies, raise the operation rates of production lines, and strengthen the overall supply chain ecosystem.
An industry official said, "While many of the pledges are largely declarative and we need to see whether they are actually implemented, the production tax credit is a policy with tangible expected effects," adding, "It will clearly increase incentives for companies to expand production and investment."
Kim Jeonghoe, Vice Chairman of the Korea Semiconductor Industry Association, emphasized, "The production tax credit is not just simple investment support, but a system that improves corporate liquidity and even reduces production costs. Not only Samsung Electronics and SK Hynix, but also domestic materials, parts, and equipment companies (so-called 'Sobu-jang') can secure a price advantage over Chinese competitors."
Overseas, Japan has already introduced a semiconductor production tax credit starting in 2024, and the United States is operating a tax credit trading system through the Inflation Reduction Act (IRA). The industry asserts that, as global competition for semiconductor leadership intensifies, it is urgent for Korea to expand tax support linked to productivity.
Additionally, Lee pledged the prompt enactment of the Special Semiconductor Act, stating, "We will make Korea the world's number one semiconductor nation through overwhelming technological superiority and innovation." He explained, "National-level support and investment are essential to enhance semiconductor competitiveness."
Lee also said, "We will complete the West Coast Energy Expressway by 2030 to help semiconductor companies achieve RE100," and "We will expedite the establishment of the Yongin Semiconductor Cluster to create a world-class smart green semiconductor complex." He further stated, "To strengthen the competitiveness of system semiconductors and foundries (semiconductor contract manufacturing), we will build infrastructure for R&D support and graduate schools specializing in semiconductors to nurture high-level talent as early as possible."
Quoting the late Andrew Grove, the legendary founder and former CEO of Intel, Lee said, "When a crisis strikes, bad companies fail, good companies survive, but great companies improve further." He continued, "I will make Korea a great semiconductor powerhouse. From now on, this is the real Korea." On the afternoon of the 28th, Lee began field activities focused on semiconductors by visiting the SK Hynix Icheon campus in Icheon, Gyeonggi Province, and holding a roundtable on AI memory semiconductors.
Lee Jae Myung, the presidential candidate of the Democratic Party of Korea, visited the burial site of former President Kim Dae Jung at the National Seoul Memorial Cemetery in Dongjak-gu, Seoul, on the 28th to pay his respects. Photo by Yoon Dong Joo
Meanwhile, on the morning of the 28th, Lee visited the National Seoul Memorial Cemetery in Dongjak-gu, Seoul, to pay his respects not only at the graves of former Presidents Kim Dae Jung and Kim Young Sam, but also at the graves of conservative leaders Park Chung Hee and Syngman Rhee. Lee's visit to the graves of these former presidents is being viewed as a bold, pragmatic move that transcends the ideological divide between progressives and conservatives. Lee's camp explained, "This demonstrates that Lee intends to show his commitment to unity not just in words, but through action."
Lee also visited the grave of the late Park Tae Joon, honorary chairman of POSCO, who served as president of the United Liberal Democrats and as prime minister in the Kim Dae Jung administration in 2000. Dressed in a black suit and black tie, Lee wore a Taegeukgi badge on his left chest. In the memorial guestbook, he wrote, "A world where we live together" and "A Republic of Korea where the people are the protagonists, I will make it together with the people."
After being nominated as the presidential candidate the previous day, Lee emphasized the theme of "unity" by mentioning the word 14 times in his acceptance speech. He also addressed the possibility of recruiting centrist and conservative figures, saying, "I will employ people based on competence as widely as possible, regardless of personal ties."
In fact, Lee asked former Environment Minister Yoon Yeo Joon, known as a strategist in the conservative camp, to serve as the chief campaign manager, and received his acceptance. Lee explained, "He has always given me much advice and candid counsel. There are many, but I asked former Minister Yoon, as a representative figure, to take overall charge of the campaign, and fortunately, he agreed."
The Democratic Party plans to launch its campaign committee around the 30th and begin full-scale preparations for the presidential election. With the recruitment of former Minister Yoon as chief campaign manager, the party's outreach is expected to expand rapidly. Last October, Lee also held a luncheon meeting with Yoon to exchange views on the political situation.
Within the party, there are also discussions about appointing Kim Kyung Soo, former governor of South Gyeongsang Province and a former primary rival, as a co-chair of the campaign committee as part of efforts toward unity.
Lee Jae Myung, the Democratic Party presidential candidate, is writing in the guestbook after paying respects at the Memorial Tower in the National Seoul Memorial Cemetery, Dongjak-gu, Seoul, on the 28th. Photo by Yoon Dongjoo
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