Choo Kyung-ho "Full Support for Semiconductors... Electricity and Gas Prices to Be Decided Soon" (Comprehensive)

Choo Kyung-ho, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho pledged to make all-out government efforts to secure a global semiconductor super-gap. He also hinted that government tax revenue may fall short of initial expectations and emphasized that a decision on whether to raise electricity and gas rates will be made soon.

On the 7th, Deputy Prime Minister Choo made these remarks during a visit to Samsung Electronics' Pyeongtaek Campus. During the visit, he held a meeting with Kyung Kye-hyun, President and CEO of Samsung Electronics' DS Division, and Park Hak-gyu, President and CFO of the DX Division. He also toured the semiconductor production lines to gather on-site feedback.

Deputy Prime Minister Choo stated, "Semiconductors are the brain of advanced industries such as artificial intelligence (AI) and future mobility," emphasizing that "the semiconductor industry is a core national task directly linked to national security and survival beyond the issues of individual companies."

He continued, "Semiconductors are called the rice of industry, but they are an industry akin to a lifeline," adding, "Our economy and industry cannot function without semiconductors." He further noted, "This is not a problem of specific companies," and said, "The government will fully support securing a semiconductor super-gap for the future, economy, and industry of the Republic of Korea."

Deputy Prime Minister Choo also mentioned the possibility that this year’s government tax revenue may fall short of initial estimates. Last year, the government projected tax revenue for this year at 400.5 trillion won. In response to questions about the tax shortfall, Choo said, "Real estate prices, which had surged, are now adjusting, and other asset markets such as stocks are not doing well," adding, "It seems likely that tax revenue will fall short of the initial budget."

From January to February, national tax revenue was 54.2 trillion won, down 15.7 trillion won compared to the same period last year. This decline was due to decreases in capital gains tax, securities transaction tax, and value-added tax. Even assuming tax collection from March to the end of the year remains the same as last year, it is projected that tax revenue will be about 20 trillion won less than the initial estimate.

Regarding the postponement of the decision on electricity and gas rate hikes in the second quarter, Deputy Prime Minister Choo said, "We have listened to opinions from various sectors and assessed the situation concerning issues with public enterprises and public anxiety, so it is time to make a decision," adding, "Whether to raise rates further will be decided and finalized in the near future."

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