Yang Hyang-ja: "Confirming the Semiconductor Alliance is a Key Agenda of the Korea-US Summit"

Interview with Yang Hyang-ja, Chair of the Semiconductor Special Committee
Situation More Serious Than During Japan's Material Regulations
Legislation to Be Enacted in September Reflecting Industry Demands
"Lee Jae-yong's Pardon Should Be Seen as Future Responsibility, Not Past Forgiveness"

[Asia Economy Reporter Oh Ju-yeon] "One of the key agendas to be addressed at the upcoming South Korea-US summit in May is the confirmation of the ‘semiconductor alliance.’ It is necessary to solidify the strategic alliance with the United States, which holds the lead in the semiconductor market, while balancing so as not to provoke China, the largest market."

Yang Hyang-ja, Chair of the Semiconductor Special Committee of the Democratic Party of Korea. / Photo by Yoon Dong-ju doso7@

Yang Hyang-ja, chairperson of the Democratic Party of Korea’s Special Committee on the Semiconductor Technology Hegemony War (Semiconductor Special Committee), which held its first meeting on the 27th, said this in an interview with Asia Economy, emphasizing, "To win the semiconductor hegemony war, national interest must support it. The current situation is more serious than Japan’s material industry regulations in 2019."

She repeatedly stated that ‘unprecedented’ support is needed to strengthen the competitiveness of domestic semiconductor companies. For example, the United States offers a 40% tax credit on semiconductor facility investments, Europe has announced a 50 billion euro investment plan, and China has revealed a 10-year corporate tax exemption plan, with each country actively supporting the industry.

Chairperson Yang pointed out, "We cannot protect domestic companies with incentives lower than those of competing countries," adding, "However, rather than support, there are many things that are legally restricting and holding us back."

Yang Hyang-ja, Chair of the Semiconductor Special Committee of the Democratic Party of Korea. / Photo by Yoon Dong-ju doso7@

In the domestic semiconductor industry, there are demands for the introduction of tax incentives at the level of the United States or higher, as well as deregulation of laws such as the Chemical Substances Control Act and the Chemical Management Act. The Special Committee plans to gather these opinions to ensure that investment timing is not missed. Chairperson Yang also stressed the necessity of talent development. She said, "For early growth of system semiconductors and securing global competitiveness, the government and companies must simultaneously develop talent cultivation and technology advancement roadmaps." The Special Committee aims to collect industry opinions by the end of May, propose a special semiconductor bill by August, and have it processed in the National Assembly by September.

Meanwhile, regarding the pardon discussions for Samsung Electronics Vice Chairman Lee Jae-yong, whose role in semiconductors has been raised, Chairperson Yang evaluated, "The pardon should be viewed not as ‘forgiveness of the past’ but as ‘responsibility for the future,’" adding, "The pardon debate arises among the public because of Vice Chairman Lee’s role."

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