South Korea plans tax cuts of up to 35% for chip and tech investments

On January 3, according to Reuters, South Korea said on Tuesday that it plans to provide substantial tax incentives to semiconductor and other technology companies investing in the country to strengthen its supply chain security and boost the economy.

Companies making capital investments in the country will receive a tax break of up to 35%, which will help companies save more than 3.6 trillion won ($2.82 billion) in taxes in 2024, South Korea's finance ministry said in a statement. .

South Korea's move comes after Taiwan, home to TSMC, the world's largest foundry chipmaker, and the United States announced plans to move chip production home to boost related industries, the report said.

However, South Korea's finance ministry added that the tax cut plan needs to be approved by the opposition-dominated parliament.