FKCCI "Welcome the Passage of the K-Chips Act... Investment Channels Open"

"Temporary Investment Tax Credit This Year... Up to 25% for Large Corporations"

The Federation of Korean Industries (FKI) welcomed the passage of the amendment to the Restriction of Special Taxation Act by the National Assembly's Planning and Finance Committee Tax Subcommittee on the 16th, stating that "the amendment will play a key role in unlocking investment opportunities."

Choo Kwang-ho, head of FKI's Economic and Industrial Headquarters, said, "Recently, Korea's semiconductor industry exports have been halved, and an unprecedented crisis is unfolding as the gap widens between Samsung Electronics, SK Hynix, and Taiwan's TSMC," adding, "We expect the amendment to breathe new life into the industry and open the door to investment."

On the 16th, at the Tax Subcommittee of the Planning and Finance Committee held in the National Assembly, Chairman Ryu Seong-geol is striking the gavel.
[Image source=Yonhap News]

The amendment includes raising the investment tax credit rate for facilities investment in national strategic technologies such as semiconductors from 8% to 15% for large corporations and from 15% to 25% for small and medium-sized enterprises. This year, a temporary investment tax credit will be applied, providing an additional 10% deduction on the amount exceeding the average investment over the past three years.

Head Choo stated, "In line with the government's plan to foster national advanced industrial complexes, companies have also announced large-scale investments," and added, "We hope the government will make efforts to ensure that the support plans proceed without any setbacks."

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