[2023 Economic Outlook] Only Semiconductor Act and Multiple Voting Rights Act Show Positive Signs Under Yoon Administration

[Asia Economy Reporter Koo Chae-eun] The Semiconductor Special Act and the Multiple Voting Rights system, which are currently under bipartisan agreement with limited differences, unusually have the possibility of passing through bipartisan consensus. This is because, like the delivery price linkage system that passed the National Assembly plenary session on the 8th, there is little disagreement among the industry, ruling and opposition parties, and the government.

The Semiconductor Special Act (National Advanced Strategic Industry Special Act and Restriction of Special Taxation Act), which increases tax credits for semiconductor facility investments and expands support, is a representative example. Although the opposition party was initially lukewarm about this law, given the global competition for semiconductor supremacy and strong demands from the industry, it is expected to pass within the year or be approved during the temporary session of the National Assembly.

In fact, in August, the United States enacted the "Chips and Science Act," which provides a total of $52 billion (approximately 70 trillion KRW) in subsidies to expand domestic semiconductor production facilities. The European Union (EU) has also recently agreed on the "European Chips Act" to strengthen the semiconductor ecosystem. The ruling party is pushing for the bill's passage, citing that countries are competitively introducing semiconductor industry promotion laws, and the Democratic Party also shares this consensus.

The "Multiple Voting Rights for Venture Companies" system, which the government and ruling party have promoted but was also an opposition party presidential pledge, does not have significant differences in views between the ruling and opposition parties. In fact, during the first half of the 21st National Assembly, the Industry, Trade and Energy Committee, led by the then-ruling Democratic Party, promoted the multiple voting rights bill. Differential voting rights grant founders or managers up to 10 voting rights per one share of their stock. Last year, there were criticisms that Coupang chose to list on the U.S. stock market because Korea did not have multiple voting rights, leading to legislative discussions led by the Democratic Party.

In fact, the Democratic Party pledged as its second campaign promise in the 21st general election to realize the "Venture 4 Major Powers" by allowing multiple voting rights for venture companies. The bill is currently pending in the Legislation and Judiciary Committee, and since there is little difference in views between the ruling and opposition parties, it is highly likely to pass after the committee's systematic and detailed review.

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