South Korean President Yoon Suk Yeol said on Monday that he will prolong tax breaks for investments in the local semiconductor sector to increase employment and recruit new talent.
The nation, which is home to the world’s leading memory chipmakers Samsung Electronics and SK Hynix, plans to enhance tax benefits and assistance to boost the competitiveness of high-tech industries such as chips, screens, and batteries.
“When I talk to heads of state, what I talk about most about South Korea is BTS and semiconductors,” Yoon told a conference of chip industry leaders and students, alluding to the K-pop supergroup.
In January 2023, the government announced a proposal to provide significant tax incentives to semiconductor businesses investing in the country, which would expire this year.
“Tax deduction for semiconductor investments is supposed to expire this year, but we will extend the effect of the law to continue with an investment tax deduction,” he stated.
In response to concerns that such tax credits provide preferential treatment to major corporations, Yoon said that larger chip investments would result in more employment and more state tax revenue in the long run.
Samsung Electronics, a South Korean electronics behemoth, has announced plans to spend $230 billion through 2042 to expand the country’s chipmaking base.
Our lives have become much more comfortable and enjoyable as a result of the proliferation of digital platforms. We are a developing species, growing into a better version of ourselves, evolving into the realm of technology, and it is safe to assume that our lives would be quite different without these digital platforms.
These gadgets are not only useful for gaming but also for professional and academic purposes. These electrical and digital gadgets, including smartphones, computers, iPads, electrical equipment, appliances, and many more, are controlled by a tiny electrical chip known as a semiconductor.
Semiconductors, which are placed between the conductor and the insulator, supply the bare minimum of electricity required for our products to operate properly and are therefore employed by the world’s top electronics companies.
Over the years, semiconductor businesses have grown into some dazzling functionality and power at inexpensive low costs. Because of the developments achieved by the firms, semiconductors have become the backbone of the digital developing world and perform smoothly.
