'15% Tax Credit' K-Chips Act Passes National Assembly Subcommittee... Includes Hydrogen and Future Cars

The amendment to the Restriction of Special Taxation Act for fostering the domestic semiconductor industry, known as the K-Chips Act, passed the tax subcommittee of the National Assembly's Strategy and Finance Committee on the 16th.

The tax subcommittee of the Strategy and Finance Committee held a meeting from 10 a.m. to around 5:30 p.m. that day and approved the amendment to the Restriction of Special Taxation Act. The amendment raises the tax credit rate for semiconductor investments from the current 8% to 15% for large corporations, and from 16% to 25% for small and medium-sized enterprises.

On the morning of the 16th, at the Tax Subcommittee of the Planning and Finance Committee held in the National Assembly, Chairman Ryu Seong-geol is conversing with Shin Dong-geun, the opposition party's Democratic Party ranking member.
[Image source=Yonhap News]

In addition to semiconductors, the tax credit targets include future mobility industries such as electric vehicles and autonomous vehicles. Specifically, the subcommittee stipulated in the amendment that technologies related to semiconductors, secondary batteries, vaccines, displays, hydrogen, future mobility, and other fields designated by presidential decree will be included as eligible for tax credits.

The inclusion of hydrogen and future mobility in the tax credit targets was requested by the Democratic Party. The amendment, having passed the subcommittee, is scheduled to go through the full Strategy and Finance Committee meeting on the 22nd and then be addressed at the National Assembly plenary session on the 30th.

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