South Korea introduces tax incentives to bolster chip industry growth | World News

South Korea to Detail Tax Incentives Aimed at Supporting Chip Industry

South Korea’s finance minister, Choi Sang-mok, announced plans to introduce detailed tax incentives as part of corporate reforms to enhance the value of listed companies. The government will seek feedback from market participants in the coming months before finalizing the tax incentives.

Minister Choi Sang-mok emphasized the government’s commitment to supporting the country’s semiconductor industry, a crucial sector for South Korea’s economy. The government will release comprehensive measures next month to bolster the semiconductor industry and enhance the global competitiveness of domestic companies.

The tax incentives are part of the “Value-up Programme” proposed by the government earlier this year to increase the value of listed companies. The program aims to provide tax benefits to companies that enhance shareholder returns and dividend income for shareholders.

In addition to the tax incentives, South Korea is also exploring the possibility of a three-way free trade agreement with Japan and China to further boost economic growth. Choi Sang-mok expressed optimism about the potential FTA and highlighted the importance of international trade for South Korea’s export-driven economy.

Looking ahead, Choi Sang-mok predicted that consumer inflation would stabilize in the mid-to-lower 2% range in the second half of the year. He also anticipated higher tax revenue in 2024, despite weaker-than-expected corporate tax income.

The government’s efforts to support the semiconductor industry and enhance corporate value reflect South Korea’s commitment to economic growth and competitiveness in the global market.