The Path Opened for Full-Scale Development and Support of the Semiconductor Industry

Representative Yang Hyang-ja Proposes Korean-Style 'K-Chips Act' Responding to Semiconductor Support Laws of the US, EU, and Japan, Passed by the Industry Committee

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Recently, as competing countries such as Japan, Taiwan, and China strengthen their domestic industrial competitiveness through unprecedented semiconductor support policies, a path has opened to fully nurture and support South Korea's semiconductor industry.

Yang Hyang-ja, a member of the National Assembly (Industry, Trade, Energy, Small and Medium Venture Business Committee, Gwangju Seo-gu Eul), announced that the "Partial Amendment to the Special Act on Strengthening and Protecting National Advanced Strategic Industry Competitiveness" passed the full meeting of the Industry Committee on the 15th.

On August 4th, Representative Yang, in her capacity as chairperson of the People Power Party's Special Committee on Strengthening Semiconductor Industry Competitiveness (hereinafter Semiconductor Special Committee), jointly proposed two package bills: the "Partial Amendment to the Special Act on Strengthening and Protecting National Advanced Strategic Industry Competitiveness" (hereinafter National Advanced Strategic Industry Act) and the "Partial Amendment to the Restriction of Special Taxation Act," collectively called the "K-Chips Act."

The amendment to the National Advanced Strategic Industry Act, which passed the Industry Committee on this day, was based on Representative Yang's bill and merged parts of the bills proposed by Representatives Kim Han-jung and Yang Geum-hee.

The bill includes ▲ the National Advanced Strategic Industry Committee supporting the creation of specialized industrial complexes from the development stage to enable rapid establishment and designation of specialized complexes ▲ expanding the scope of exemption from preliminary feasibility studies to public institutions, etc. ▲ shortening the period for expedited processing of permits and approvals from 30 days to 15 days ▲ adding high schools tailored to industrial demand and expanding university student quotas in advanced strategic industry workforce training projects ▲ relaxing teacher appointment qualifications and allowing concurrent and dual positions.

Meanwhile, the amendment to the "Restriction of Special Taxation Act," which significantly raises the tax credit rate for facility investment companies in the national advanced strategic industry to the level of competing countries, is currently under review by the Tax Subcommittee of the Planning and Finance Committee.

Representative Yang said, "Recently, China has invested 187 trillion won, Japan 12 trillion won, and Taiwan is also pushing to raise the tax credit for technology companies from 15% to 25%, intensifying the semiconductor hegemony competition," adding, "With the passage of the National Advanced Strategic Industry Act through the Industry Committee, our semiconductor companies can now compete on the same starting line as competing countries."

She continued, "Semiconductors are a timing industry; if the right time for investment is missed, the industry leadership will also be lost," and added, "I will also strive to ensure that the amendment to the Restriction of Special Taxation Act, which raises the tax credit rate to the level of competing countries as a package bill, passes promptly in the Planning and Finance Committee."

The "Partial Amendment to the National Advanced Strategic Industry Act," which Chairperson Yang Hyang-ja proposed as the main sponsor, was jointly proposed on a bipartisan basis by 35 members of the National Assembly, and the "Partial Amendment to the Restriction of Special Taxation Act" by 30 members.

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