Semiconductor Special Committee: "Facility Investment Tax Credit Expanded Up to 30%"

Basic 20%·Mid-sized 25%·Small 30%
Foreign Skilled Worker Tax Credit Period Extended to 10 Years
Expansion of Preliminary Feasibility Study Exemption Scope

Yang Hyang-ja, Chairperson of the Special Committee on Strengthening Competitiveness of the Semiconductor Industry, is announcing the achievements of the Special Committee's activities on strengthening semiconductor industry competitiveness at the National Assembly Communication Office on the 2nd. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Hyunji Kwon] The ruling party, the People Power Party, will propose a bill on the 4th to strengthen the competitiveness of the semiconductor industry by expanding the facility investment tax credit rate to up to 30% and extending the tax reduction period for foreign technicians to 10 years. The bill also includes measures for nurturing talent, such as the establishment of additional customized high schools and the expansion of student quotas.

Yang Hyang-ja, Chairperson of the People Power Party's Special Committee on Strengthening Semiconductor Industry Competitiveness, held a press conference at the National Assembly on the 2nd and stated, “We will submit two bills on strengthening semiconductor industry competitiveness, which were derived through five meetings and the final party-government consultation, to the National Assembly,” adding, “They will be proposed on the 4th, coinciding with the enforcement date of the National Advanced Strategic Industry Act.” The bills are amendments to the National Advanced Strategic Industry Act and the Restriction of Special Taxation Act.

The core is to strengthen national support for the semiconductor industry by providing tax reductions and easing regulations. Professor Jung Deok-gyun of the Department of Electrical and Computer Engineering at Seoul National University, a member of the special committee, explained, “The tax credit period for facility investments in national advanced strategic industries such as semiconductors will be extended until 2030, and the credit amount will be balanced with the tax support benefits of competing countries: a basic 20%, 25% for mid-sized companies, 30% for small and medium-sized enterprises, and 5% for the excess amount.”

Additionally, the scope of exemption from preliminary feasibility studies will be expanded to include public enterprises and public institutions, and the period for expedited processing of permits and approvals will be shortened from 30 days to 15 days.

The bill also includes measures to secure semiconductor personnel. Professor Jung stated, “To attract excellent foreign technicians, the tax reduction period for qualified foreign technicians will be extended from 5 years to 10 years.” Furthermore, customized high schools tailored to industrial demand will be added to talent development projects, and student quotas will be allowed to expand.

Chairperson Yang also addressed the ‘plan to establish regional semiconductor departments,’ calling it “the part we paid the most attention to,” and said, “Currently, the semiconductor industry is generally facing a shortage of personnel, so regulations must be eased to broaden the base. We need to abandon the dichotomy between the metropolitan area and other regions and transform all regions into metropolitan areas and semiconductor industry competitiveness cities.”

He added, “It is difficult to say that this bill is better than the semiconductor bills of competing countries such as the American CHIPS Act, Taiwan, or the European CHIPS Act,” and proposed to the National Assembly, “Please promote the establishment of a permanent special committee at the National Assembly level and a pan-ministerial control tower for the semiconductor industry.”

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