Last Update: January 03, 2023, 12:17 pm IST
Taiwan and the US are posing a threat to Korea’s chip sector
South Korea said Tuesday it plans to offer big tax breaks to semiconductor and other technology companies investing at home in a bid to boost the economy as well as strengthen its supply chain security.
SEOUL: South Korea said on Tuesday it plans to offer big tax breaks to semiconductor and other technology companies investing at home in a bid to boost the economy as well as strengthen its supply-chain security.
Companies investing capital at home will be given a 35% tax cut, which will help companies save more than ₹3.6 trillion ($2.82 billion) in 2024 tax payments, the finance ministry said in a statement.
The move comes after other countries such as Taiwan, which is home to Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chip maker, and the United States made plans to shore up chip production and strengthen domestic industry. announced.
The South Korean finance ministry said the tax break plan was subject to approval by parliament, which is dominated by the opposition. ($1 = 1,276.1200 won)
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)