Medium-sized Business Sector: "Expansion of Semiconductor Investment Tax Credit Will Be a Starting Point for Overcoming the Crisis"

Kim Ki-moon, President of the Korea Federation of Small and Medium Business.

[Asia Economy Reporter Choi Dong-hyun] The small and medium-sized enterprises (SME) sector expressed its welcome on the 3rd for the government's plan to significantly raise the tax credit rate for facility investments in national strategic technologies such as semiconductors.

The Korea Federation of SMEs stated in a press release that day, "Support for revitalizing investment in the semiconductor industry and others will be a starting point to overcome the unprecedentedly difficult economic situation."

The Federation also emphasized, "Semiconductors have been the top export item for nine consecutive years and are the 'rice' of the industry that has driven our economic growth. In a situation where competition in the international semiconductor market is intensifying, expanding tax support for facility investments can contribute to achieving semiconductor superpower status."

Furthermore, the Federation said, "Expanding the existing 16% tax credit rate to up to 25% for SMEs struggling with facility investments due to interest rate hikes will serve as a catalyst for overcoming the complex economic crisis and advancing as a technology powerhouse through revitalizing SME investments. We urge the National Assembly to ensure the smooth passage of related tax support legislation so that prompt assistance can be provided to SMEs considering the difficult economic situation."

At the same time, the Federation promised, "The SME sector will also strive to overcome the economic crisis through technological development and expanded facility investments."

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