Martial Arts, National Assembly Budget Committee Calls for "Extension of National Strategic Technology Tax Credit Deadline to 2030"

Meeting Between Planning and Finance Committee and Industry Held on the 16th
Requests Include Addition of Bio and Energy to National Strategic Technologies

The Korea International Trade Association (KITA) appealed to the members of the National Assembly's Planning and Finance Committee to accelerate legislative support for tax incentives on national strategic technologies such as semiconductors and to extend the deadline for the temporary investment tax credit. They requested to empower export companies through advanced industry tax legislation support, including extending the deadline for the national strategic technology tax credit, which is set to expire at the end of 2027, by three more years and adding bio and energy sectors to national strategic technologies.

At the 'National Assembly Planning and Finance Committee Trade Industry Meeting' held on the 16th at Trade Tower in Samseong-dong, Gangnam-gu, Seoul, attendees are taking a commemorative photo.
From the left in the first row: Jeong Il-young, Kim Young-jin, Yoon Ho-jung, Kim Tae-nyeon, Jeong Tae-ho, members of the Democratic Party; Yoon Jin-sik, Chairman of the Korea International Trade Association; Lee In-ho, Vice Chairman of the Korea International Trade Association; Lee Dong-seop, Chairman of Iljin Group; Park Seung-yong, President of HD Hyundai Heavy Industries; Hwang Cheol-ju, Chairman of Juseong Engineering.
From the left in the second row: Ahn Do-gul, Lim Kwang-hyun, Shin Young-dae, members of the Democratic Party; Jang Jae-jin, Chairman of Orient Bio; Noh Si-chul, Chairman of Interojo; Kim Dong-wook, Vice President of Hyundai Motor Company; Sung Jun-ho, CEO of Smilegate Holdings. Provided by the Korea International Trade Association.

On the 16th, KITA held a 'National Assembly Planning and Finance Committee - Trade Industry Meeting' at the Trade Tower in Samseong-dong, Gangnam-gu, Seoul, to share export issues and difficulties. Participants discussed expanding corporate tax support and detailed support measures, as well as regulations and difficulties faced in export sites. The meeting was attended by nine Democratic Party members of the Planning and Finance Committee, including Jeong Tae-ho, Kim Tae-nyeon, and Yoon Ho-jung, and 11 representatives and officials from export companies such as Hyundai Motor Company.

KITA requested the extension of the national strategic technology tax credit deadline until 2030, gradual expansion of tax credits for overseas resource development investments, and the addition of bio and energy sectors as national strategic technologies.

To enhance the effectiveness of tax and financial support policies, they proposed extending the temporary investment tax credit for small and medium-sized enterprises’ facility investments until next year and expanding its application to large corporations, relaxing the obligation to maintain business type when exporting companies undergo succession, and lowering the highest inheritance and gift tax rates.

Additionally, they suggested simplifying the corporate tax structure, which currently has a four-tier progressive system, lowering the top tax rate (24%), gradually raising the corporate R&D tax credit rate for large corporations (2%) to the OECD average (17%), and introducing special provisions for the global minimum tax as part of tax support policies.

At the meeting, Chairman Yoon delivered a petition on trade industry regulations and difficulties to the Planning and Finance Committee members. Last year, KITA submitted 213 cases of trade industry regulations, difficulties, and requests to the National Assembly and relevant government ministries. This led to a total of 44 policy improvements and reflections, including five legislative amendments.

Yoon Jin-sik, Chairman of KITA, emphasized, "With the recent increase in internal and external uncertainties surrounding our economy, concerns in the trade industry are significant. To respond to the new U.S. administration's trade pressures, counter China's low-price offensives and pursuit in advanced industries, and enable our companies to cope with crises and secure competitiveness in the global market, support through tax legislation by the National Assembly is urgently needed." He added, "The trade industry will repay legislative efforts to resolve corporate regulations with export achievements and contributions to economic growth."

Jeong Tae-ho, the Democratic Party member and opposition whip of the Planning and Finance Committee, responded, "We must focus our policy capabilities to find a breakthrough for the export crisis. After listening to export environment forecasts and the trade industry's difficulties and requests, we will seek practical measures to support export companies."

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