As the so-called "K-Chips Act" (amendment to the Restriction of Special Taxation Act) passed the National Assembly plenary session, the corporate sector expressed its appreciation.
On the 27th, The Federation of Korean Industries noted, "The passage of this amendment to the Restriction of Special Taxation Act will provide relief for the industrial sector and will serve as a catalyst for overcoming the crisis facing the Korean economy."
Lee Sang-ho, Deputy Minister of FKI, diagnosed, "The Korean economy is facing unprecedented uncertainty due to the strengthening of protectionism following the inauguration of the new U.S. government and the intensification of geopolitical risks," adding that "key industries such as semiconductors are experiencing increasing difficulties due to worsening trade conditions and intensified global competition."
Regarding the passage of this amendment to the Restriction of Special Taxation Act, the Deputy Minister expressed hope that "expanding tax credits for semiconductor production facilities and national strategic technology research and development facilities will serve as a stepping stone for our corporations to grow into global technology leaders."
The extension of the temporary investment tax credit was also assessed to be helpful in improving the investment sentiment of corporations. He noted, "However, it is very disappointing that the target is limited to small and medium-sized enterprises," and added, "Given that investment vitality has declined regardless of the size of corporations, I hope that broader and more universal support plans will be considered, including large corporations."
The Deputy Minister emphasized, "The corporate sector will also take the lead in reigniting the engine of economic growth by engaging in active investment and innovation in response to the National Assembly's commitment to revitalizing the livelihood economy."