A PYMNTS Company

South Korea Plans Large Tax Breaks To Spur Chip Competition

By  |  January 3, 2023

South Korea said on Tuesday it plans to offer large tax breaks to semiconductor and other technology companies investing at home to strengthen its supply-chain security while boosting the economy.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Companies making capital investment at home would be given up to a 35% tax deduction which would help companies save more than 3.6 trillion won ($2.82 billion) in 2024 tax payments, the finance ministry said in a statement.

    Read more: South Korea Watchdog Fines Six Logistic Firms

    This move comes after other countries, such as Taiwan, home to the world’s largest contract chipmaker Taiwan Semiconductor Manufacturing, the United States announced plans to bring chip production on shore and bolster the domestic industry.

    The South Korean finance ministry added that the tax break plans were subject to approval by the parliament, which is dominated by the opposition.