Next Month's 'K-Semiconductor Belt Strategy' to Be Released... Industry Calls for "Tax Benefits and Workforce Expansion"

"Add Tax Benefits and Increase Enrollment Quotas for Semiconductor Departments"

On the 9th, at the Westin Chosun Hotel in Jung-gu, Seoul, Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy and attendees are taking a commemorative photo at the Semiconductor Industry Association Chairman Meeting. From the left, Choi Chang-sik, Vice Chairman and CEO of DB HiTek; Lee Seok-hee, President and CEO of SK Hynix; Minister Sung; Lee Jung-bae, President of Samsung Electronics Memory Division; Heo Yeom, Chairman of Silicon Mitus. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jang Sehee] The government plans to establish the 'K-Semiconductor Belt Strategy' next month to respond to the semiconductor hegemony competition among major countries such as the United States and China. Additionally, a battery industry development strategy aimed at enhancing the competitiveness of the automotive industry, focusing on future vehicles such as eco-friendly cars, will be announced within the first half of the year.

According to the Ministry of Trade, Industry and Energy and the Ministry of Economy and Finance on the 25th, the government plans to create a comprehensive semiconductor industry support plan. A government official stated, "Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy met with the industry and heard opinions, including that tax credits of up to 50% should be provided for facility investments." He added, "Since the semiconductor industry needs to be nurtured, the government also plans to significantly increase budget and tax support."

The government will first build semiconductor clusters to respond to major countries' efforts to establish domestic-centered semiconductor supply chains. It plans to create clusters specialized by key value chains, such as the Yongin cluster's materials, parts, and equipment (SoBuJang) specialized complex, to supplement vulnerable parts of the supply chain.

It will increase tax support, financial and infrastructure support for investments in core technologies with high technological and economic value at the national level, such as advanced semiconductors, and rationalize regulations.

Regarding this, a Ministry of Economy and Finance official said, "There was a request to increase research and development (R&D) tax credits," adding, "We are exploring various methods such as expanding the scope of eligibility or increasing the tax credit rate."

Currently, the United States has decided to provide a 40% tax credit on investment costs related to semiconductor manufacturing facilities, Europe has announced a 50 billion euro investment plan, and China has announced a corporate tax exemption plan.

Meanwhile, industry insiders unanimously agree that manpower training measures should be introduced alongside tax support. An Ki-hyun, Executive Director of the Korea Semiconductor Industry Association, emphasized, "We have requested the government to provide a 50% tax credit on investment costs for semiconductor-related investments," and stressed, "To revive the semiconductor industry, it is urgent to expand the enrollment capacity of semiconductor-related departments."

This content was produced with the assistance of AI translation services.