South Korea to Offer Incentives for Chip Manufacturing Boost

South Korea is planning to offer tax-based incentives to semiconductor suppliers and other technology players investing in the country, according to the media. The move is said to be a part of a wider plan to boost the economy and build up its supply chain.

In a statement released by the country’s finance ministry, the government said it is working on plans to ensure companies making a capital investment in South Korea would be handed up to a 35% tax deduction. In total, the ministry estimates the tax break could help save companies more than KRW3.6 trillion ($2.8 billion) in 2024 payments.

Breaking out the proposal, big companies could get a tax credit of 15% on investments and manufacturing facilities, up from a previous plan of 8%. Smaller companies would be in line to get 25%, while any additional chip investments in 2023 would allow a further 10% tax break. South Korea’s plan is still subject to approval by the parliament.