Economy

South Korea Advances with 'K-Chips Act' and Energy Laws to Strengthen Semiconductor and Power Sectors

South Korea Takes Legislative Leap to Boost Semiconductor and Energy Sectors

In a significant move to enhance its industrial competitiveness, the National Assembly of South Korea has passed the "K-Chips Act" alongside three pivotal energy-related laws. This legislative package aims to fortify the country's semiconductor industry and energy infrastructure, ensuring a stable power supply for its advanced industries.

A perspective of the Yongin Semiconductor National Industrial Complex

The K-Chips Act, an amendment to the Restriction of Special Taxation Act, offers enhanced tax benefits for semiconductor companies. Simultaneously, the three energy laws focus on expanding the national power grid, managing high-level radioactive waste, and promoting offshore wind power generation. These measures are crucial for sustaining South Korea's position as a global leader in semiconductor manufacturing.

Industry and Government Reaction

The Korea International Trade Association (KITA) and the Korea Chamber of Commerce and Industry have both welcomed the new laws. They believe these measures will not only provide relief from external uncertainties but also stimulate investment and research and development in the semiconductor sector. The K-Chips Act increases tax credit rates for facility investments and extends the application period for R&D tax credits, aiming to invigorate the semiconductor industry.

Moreover, the energy-related laws are expected to solve critical energy supply challenges, supporting the operation of nuclear power plants and ensuring a stable energy supply for energy-intensive sectors like semiconductors.

Looking Forward

KITA emphasizes the importance of the National Assembly and the government's support in preparing reasonable measures for sustainable export growth. The commitment to turning crises into opportunities and solidifying competitiveness based on policy support is seen as essential for national economic growth and export expansion.