The cost of undergrounding semiconductor transmission lines is shared by the government...Increase investment tax credit

The government is pushing to support the cost of undergrounding work by burying the transmission lines of Yongin-Pyeongtaek semiconductor clusters in the ground.

It will also consider raising the national strategic technology investment tax credit rate for semiconductor companies and increasing tax credits for investment in R&D facilities.

Policy financing such as loans, guarantees, and insurance will also be supplied at 14 trillion won over the next year.

The Ministry of Strategy and Finance announced today a plan to strengthen support for the semiconductor ecosystem at a meeting of related ministers to strengthen industrial competitiveness presided over by Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok.

The Ministry of Economy and Finance said the possibility of policy changes is growing due to the rapid expansion of Chinese semiconductor production and the launch of a new U.S. government, adding that it will mobilize all available resources to come up with a package to support the integration of the semiconductor ecosystem.

Accordingly, in consultation with the National Assembly, we plan to support reducing the corporate burden on the construction cost of the Yongin-Pyeongtaek semiconductor cluster transmission infrastructure.

It will also push for a plan to raise the government's support limit of 50 billion won for the national high-tech strategic industry-specialized complex.

We also plan to expand tax credits to semiconductor and R&D facilities.

Currently, semiconductor companies are designated as national strategic technologies under the Special Taxation Act, and investment tax deductions for 15% of large and medium-sized companies and 25% of small and medium-sized companies are applied, which they intend to increase further.

Next year, it will supply more than 14 trillion won in policy financing to all semiconductors such as materials, parts, equipment, fabless, and manufacturing.