Lee Jae-myung "Salesperson Yoon would be fired immediately in a regular company"... Launches offensive citing Semiconductor Special Act (Comprehensive)

Full-scale Criticism of Yoon at Semiconductor Support Act Response Meeting
Kim Seong-hwan: "Only Playing the Role of a Profitless Alley Leader"
'Semiconductor Special Act' Expected to Be Agreed and Processed in March National Assembly

Lee Jae-myung, leader of the Democratic Party of Korea, launched a fierce attack on President Yoon Seok-yeol on the 8th, saying, "If this were a regular company, the sales performance would have led to immediate dismissal." This criticism was a jab at President Yoon, who volunteered to be the "salesperson of the Republic of Korea" during his state visit to the United Arab Emirates (UAE) last January, amid difficulties faced by the domestic semiconductor industry due to the U.S. Inflation Reduction Act (IRA). Amid escalating internal party conflicts caused by Lee's judicial risks, it appears that the party is using "support for the semiconductor industry" as a government offensive to shift the political landscape.

On the 8th, Lee held an "Emergency Meeting on Response to the U.S. Semiconductor Support Act" at the National Assembly and said, "Due to the delayed response to the Inflation Reduction Act (IRA), the electric vehicle industry suffered enormous damage, and the same mistake is being repeated again. The president claimed to be the 'No. 1 salesperson' himself, but he has done nothing in reality."

He added, "The government must make every effort to persuade the U.S. immediately to support the semiconductor industry, which is a burning issue right now," and "Bold measures to support advanced industries must be prepared urgently."

At the meeting, the Democratic Party leadership and the Special Committee on Economic Crisis Response continued their full-scale offensive against President Yoon's semiconductor industry development strategy. Kim Seong-hwan, chairman of the Policy Committee, criticized the Yoon administration, saying, "Currently, the humiliating diplomacy toward Japan is excessively conceding in the broader context of the Korea-U.S.-Japan military alliance," and added, "While the U.S. is implementing its East Asia strategy, Korea is conceding everything?what is it gaining? Is it just playing the role of a street boss with no benefits?"

Kim Tae-nyeon, chairman of the Special Committee, also rebutted, saying, "(President Yoon) misled the public by claiming that semiconductor investment tax credits were not realized due to opposition party obstruction," and "The Democratic Party has been advocating for bold national industrial support since the Moon Jae-in administration."

The Democratic Party emphasized measures to respond to the toxic clauses contained in the U.S. Semiconductor Support Act and the preparation of policies to foster other advanced technology industries, including semiconductors.

[Image source=Yonhap News]

Meanwhile, the ruling and opposition parties reached a consensus to hold a subcommittee meeting of the National Assembly's Planning and Finance Committee on the 16th to review and agree on the Semiconductor Special Act. However, there is a possibility of disagreement due to differing views on the tax credit rate between the ruling and opposition parties.

Previously, the Ministry of Economy and Finance submitted a government bill for the Restriction of Special Taxation Act, which includes raising the investment tax credit rate for facilities related to semiconductors and other national advanced strategic industries from 8% to 15% for large and medium-sized enterprises, and from 16% to 25% for small and medium-sized enterprises. Including an additional 10% tax credit for the amount exceeding the average investment over the past three years, the credit rate can increase up to 25-35%.

Ryu Seong-geol, a member of the ruling party and the Planning and Finance Committee's secretary, said in a phone interview with this paper, "There have already been many discussions about the tax credit rate in the subcommittee and the full committee, and we plan to discuss and process it on the 16th," adding, "Since the government bill has been submitted, it will serve as the basis for the government and ruling party."

On the other hand, the Democratic Party is reportedly considering a proposal to raise the tax credit rate higher than the government bill. After the meeting, Kim Seong-hwan, chairman of the Policy Committee, told reporters, "There are some opinions to raise (the tax credit rate) higher than the current government bill," and "It will be difficult to go lower than the government bill." Regarding the 40% credit rate suggested by some, he said, "The party has not officially reviewed that." The Democratic Party plans to complete a review of the specific credit rate soon.

An opposition party member of the Planning and Finance Committee said, "There is some consensus within the Democratic Party that the tax credit rate for semiconductors needs to be increased," and "If there is no issue with tax revenue, it is possible to raise it higher than the government bill." However, he added, "Sufficient discussion among party members is necessary first," emphasizing the need for additional feedback from within the party and the industry.

Previously, the Democratic Party maintained a negative stance on raising the tax credit rate. However, with the recent enforcement of the U.S. Semiconductor Support Act, they have shown a more progressive position on supporting the semiconductor industry. Amid worsening internal conflicts due to Lee's judicial risks, the party leadership has emphasized livelihood legislation even more. Lee himself urged the government to prepare measures through a Facebook post on the 5th, saying, "Speed is life in crisis response. We must not miss the golden time again due to delayed or inadequate responses like with the IRA (Inflation Reduction Act)."

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