Eyeing 30% Increase by 2027
The Presidential Transition Committee announced on May 3 that it would promote the growth of the domestic semiconductor sector so that annual semiconductor exports can be increased by at least 30 percent by 2027. As means to that end, the committee mentioned large-scale incentives for facility investments, faster approval procedures and assistance in infrastructure construction.
It also said that it would designate specialized colleges, consider allowing colleges to expand their departments related to the industry, and help colleges launch more joint programs with companies in the industry. The committee’s goal is to increase the annual exports from US$128 billion to US$170 billion from 2021 to 2027.
Those mentioned by the committee do not include key demands from the industry, which include a 20 percent tax credit for facility investment. According to industry sources, this is because the Ministry of Economy and Finance is opposed to it whereas the committee is willing to accept it.
“The ministry has claimed that a higher tax credit rate would lead to a decrease in tax revenue of at least five trillion won,” one of them explained, adding, “The tax credit rate applied to large corporations was raised to 10 percent early this year and the ministry is opposed to any additional upward adjustment.”