Yoon Suk-yeol pushes for tax incentives for semiconductors, key industries

President Yoon Suk-yeol on Friday advised the government to consider increasing tax incentives for semiconductors and other key industries after the related bill passed last week disappointed many due to its less-than-expected benefits.

President Yoon Suk-yeol, center, and Dutch Prime Minister Mark Rutte, left, talk with the heads of semiconductor makers, including Samsung Electronics Chairman Lee Jae-yong, right, at a teatime at the presidential office in Seoul on Nov. 17. [YONHAP]

President Yoon Suk-yeol on Friday advised the government to consider increasing tax incentives for semiconductors and other key industries after the related bill passed last week disappointed many due to its less-than-expected benefits.

“Strategic technologies such those for chips are the country’s security assets and the core technologies of our industry, so I would like to ask the Finance Ministry to consider ways to additionally expand the tax incentives for strategic industries,” Yoon said, according to deputy presidential spokesperson Lee Jae-myoung.

The bill that was passed last week would entitle big corporations to a tax credit of up to 8 percent from the previous 6 percent cap for investments in semiconductor manufacturing, which is far below the 20 percent that the People Power Party had proposed.

For small enterprises, the percentage remains 16 percent, and for mid-sized enterprises, it remains 8 percent.

The Cabinet is set to approve the revised bill later today.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]