[Yoon Administration Tax Law] Semiconductor Industry "Welcomes 3%P Reduction in Corporate Tax Top Rate"

"One-Stop Support for Workforce, Taxation, and Infrastructure Helps Management"

Samsung Electronics DS (Semiconductor) Division Hwaseong Campus view. (Photo by Samsung Electronics)

[Asia Economy Reporter Moon Chaeseok] The semiconductor industry welcomed the 'Strategy to Achieve Semiconductor Superpower' and the tax law amendment announced on the 21st. In particular, they emphasized the significance of lowering the top corporate tax rate from 25% to 22%, a 3 percentage point reduction.

For major companies such as Samsung Electronics and SK Hynix, the tax cut amounts to several hundred billion won, but it is expected to secure investment capacity and increase net profit for the current term.

An industry official said, "Given the current economic uncertainty, the overall direction of semiconductor company support under the new government is interpreted as the government’s attention and support for companies, which is welcomed."

The reaction is that the announcement of workforce, tax, and infrastructure support measures such as the 'Strategy to Achieve Semiconductor Superpower' announced that morning and the 'Training of 150,000 Personnel' announced the day before, together with the tax law amendment, will be helpful for management.

In particular, the expansion of the floor area ratio limit from 350% to 490% is expected to provide practical help in improving production capacity.

An industry official said, "Whether it is investment or increasing production capacity, the semiconductor industry operates on a large scale in all aspects, so deciding the timing of investment and production decisions is very important," adding, "The government's comprehensive support in various areas during the management decision-making process is expected to have a positive impact on establishing long-term direction."

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