Original Korean article: Seoul Shinmun
The South Korean government has introduced a new domestic production tax credit for six strategic industries including semiconductors, secondary batteries, solar power, wind power, critical materials, and AI robot components. The tax credit will be applicable through the end of 2036 and is designed to strengthen the domestic production base for these key sectors.
Companies that meet the requirements of directly producing and selling these products domestically can receive tax credits based on their production volume and standard deduction amounts. The tax credit system provides enhanced benefits for producers located outside the Seoul metropolitan region, encouraging regional industrial development and balanced economic growth across the country.
The measure represents a significant shift in government support policy, expanding tax incentives from the investment phase to the production phase. This approach aims to strengthen domestic manufacturing capabilities and reduce dependence on imports for critical technologies and materials essential to the nation's economic competitiveness.
South Korea's six major economic organizations have welcomed the new policy as a positive step toward supporting domestic industries. They view the expansion of tax support to the production stage as a crucial measure that will help strengthen the country's industrial base and enhance its global competitiveness in these strategic sectors.
