The Ministry of Trade, Industry and Energy plans to inject 100 billion won into companies in advanced strategic industries and key supply chain sectors that are returning (U-turn) to Korea this year. This marks a 75% increase from the previous year. The corporate tax reduction period will be extended from 7 to 10 years, and up to 45% of the U-turn investment amount will be subsidized.
On Jan. 23, Park Deok-yeol, the ministry’s Investment Policy Officer, explained the government’s support system during his visit to the Cheongju plant of Simmtech, a semiconductor component manufacturing company. Simmtech, known for producing printed circuit boards (PCBs) mainly for semiconductors and mobile devices, was selected as a U-turn company last May. The government is stepping up its support for these high-value-added companies in advanced strategic industries and key supply chain sectors to stimulate their U-turn investments.
Particularly, U-turn companies possessing national strategic and advanced technologies such as semiconductors, displays, secondary batteries, and vaccines will receive a basic subsidy rate of 45% for investments outside the capital region and 26% for those within. Previously, the basic subsidy rate for investments outside the capital region was only 21%, and there was no support for investments within the capital region.
Furthermore, the government plans to apply a maximum government funding ratio of 75% for advanced industries and sectors of national strategic and advanced technologies investing in non-capital regions, aiming to reduce the financial burden on local governments.