FKCCI "US 40%·Korea 8~12%... Semiconductor Tax Credit Rate Needs Increase"

[Asia Economy Reporter Park Sun-mi] There are criticisms that the tax credit rate for semiconductor conglomerates' facility investments, which the government plans to raise by 2 percentage points to around 8-12%, is too low.

On the 21st, the Federation of Korean Industries (FKI) issued a statement signed by Yoo Hwan-ik, head of the Industrial Headquarters, saying, "We positively evaluate the government's comprehensive measures to strengthen the competitiveness of the semiconductor industry, including investment support, workforce training, securing leading technologies, and ecosystem establishment," and "especially, we welcome the expectation that the government plans to ease university enrollment regulations for semiconductor-related workforce training and significantly improve labor and environmental regulations to suit the characteristics of the semiconductor industry."

However, they expressed regret regarding the scale of support. The United States is promoting a 25% tax credit on semiconductor equipment and facility investments under the CHIPS Act. There is also a bill proposing a tax credit of up to 40%.

The FKI pointed out, "The government said it would raise the tax support for conglomerates' facility investments by 2 percentage points from the existing 6%-10% to apply 8%-12%. Considering that the U.S. is promoting a tax credit of up to 40% on semiconductor facility investments, a corresponding increase in the tax credit rate is necessary."

Furthermore, they added, "The government and the National Assembly need to work together to ensure that the announced support measures are implemented promptly without delay," and "We hope that related measures will be continuously supplemented so that our companies can maintain competitiveness in the fierce global semiconductor war."

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