South Korea plans tax exemption to support chip makers – WORLD

Chip production in South KoreaThe South Korean government plans to increase tax breaks for capital investment by large chip companies to 25% after Chairman Yoon Suk-yeol called for stronger incentives to strengthen the chip industry.Large companies can receive tax breaks of 8 to 15 percent, planned under a law passed last month, and small companies’ investment spending from 16 to 25 percent, the ministry said, according to a statement from the Finance Ministry. any additional investment in chip manufacturing in 2023 will receive an additional 10 percent tax deduction. The expanded plan, which will be offered this month, will reduce the tax burden on companies by more than 3.6 trillion won ($2.8 billion). Korea, home to top memory makers Samsung Electronics and SK Hynix Inc. a battle between the US and China over the semiconductors that control important technologies like them.