Amid the intensifying war to attract high-tech industries to their own countries, the government has.. – MK – 매일경제
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Amid the intensifying war to attract high-tech industries to their own countries, the government has released a support plan for the semiconductor industry worth KRW 26 trillion. Instead of directly subsidizing major companies, including Samsung Electronics and SK Hynix, the company will focus on strengthening weaknesses in the semiconductor industry through preferential loans and training infrastructure and manpower.
The key is to establish a 17 trillion won low-interest loan program through investment in the KDB Development Bank and create a 1.1 trillion won semiconductor ecosystem fund to help invest and develop R&D in the materials, parts, equipment, and fabless (design) sectors, which are vulnerable to the Korean industry.
In addition, more than 5 trillion won will be invested in fostering semiconductor personnel over the next three years, and at least 2.5 trillion won will be provided to support road, water, and power infrastructure so that Yongin semiconductor megacluster can be quickly established.
President Yoon Suk Yeol presided over the second economic issue inspection meeting at the Presidential Office in Yongsan on the 23rd, saying, “Semiconductors are an area where all-out war is going on,” adding, “We have created a comprehensive support program for the semiconductor industry worth KRW 26 trillion, which includes financial, infrastructure, R&D, as well as support for small and medium-sized companies.” President Yoon said, “As companies invest huge amounts of money in facilities such as new factories and line expansion, liquidity problems arise, and the new Korea Development Bank support program will solve many of these difficulties.”
He also refuted some claims that support for the semiconductor industry is a “big corporate tax cut.” More than 70% of the semiconductor support program benefits small and medium-sized companies, President Yoon said. “If corporate investment expands and profits increase due to tax support, people enjoy more quality jobs, which will revive people’s livelihoods and increase tax revenues.”
It has also officially extended the K-Chips Act (Restriction on Special Taxation Act), which will be sunset this year. The K-Chips Act is a system that returns 15-25% of taxes when investing in national strategic technologies such as semiconductors, secondary batteries, and electric vehicles. If the temporary investment tax credit, which adds a temporary 10-point deduction rate to this year’s investment increase, is added, the deduction rate will increase by up to 25-35%. The government is putting weight on extending the K-Chips Act by three years through the revision of the tax law this year.
“The tax credit is a government refund of a certain percentage of R&D and facility investment, which is no different from subsidies,” President Yoon said. “We will extend it so that companies do not have difficulty in R&D and facility investment.”
The construction of Yongin Semiconductor Mega Cluster emphasized the speed war and promised to install infrastructure including electricity and water as soon as possible. “Time is the subsidy and the speed of responding to the problem is the most important,” President Yoon said. “Please strengthen consultations with the National Assembly so that the National Electricity Network Special Act, which drastically shortens the construction period of power lines, can be passed by the National Assembly as soon as possible.”
The semiconductor industry showed a welcome. “The extension of financial support and investment tax credit has created conditions for the completion of a speedy semiconductor cluster,” a semiconductor industry official said. “As major countries are competing for support for the semiconductor industry, a speedy implementation is essential.”
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