To Rescue Display Industry from Crisis
The South Korean government designated display technology as a national advanced strategic technology on Nov. 4, along with semiconductor, rechargeable battery, and 12 others. Various incentives are anticipated in these sectors with regard to investment, project approval, R&D, manpower training, etc.
Those in the display industry, however, point out that the technology needs to be designated as a national strategic technology based on the Restriction of Special Taxation Act (RSTA), which guarantees direct tax incentives, in order to make a breakthrough.
At present, only semiconductor, battery and vaccine are classified as national strategic technologies under the RSTA and display is classified as new growth and source technology. A tax credit ceiling of 3 percent is applied to large corporations in the second group, whereas it is 6 percent for the first.
“South Korea has led the global display industry for 17 years, but China is poised to take the place in both LCD and OLED,” said an industry source, adding, “This is because, above all, the South Korean government is indifferent to the sector unlike the Chinese government.”