President Yoon Suk Yeol vowed to extend the tax break on semiconductor investments, originally set to expire this year, on Jan. 15.
“If tax credits lead to more investment in the semiconductor sector, it would boost profits, jobs across the entire semiconductor ecosystem, leading to an increase in national tax revenue,” he said during a policy debate held at Sungkyunkwan University’s Natural Sciences Campus in Suwon, South Korea.
He refuted claims that the tax credit only benefit large conglomerates. “Those claims are nothing but false propaganda,” he added.
Yoon pointed out that the Ministry of Economy and Finance and the government at large also operate with a business mindset. “The government recognizes that tax breaks and subsidies will generate more tax revenue,” he said.
He announced the $471.4 billion (622 trillion won) plan to build a “semiconductor mega cluster” in cities across the southern Gyeonggi Province, including Pyeongtaek, Hwaseong, Yongin, Icheon, Seongnam, Anseong, Pangyo, and Suwon. The cluster, designed to become a hub for chipmakers and research companies in the semiconductor sector, is expected to create at least 3 million jobs over the next 20 years.
Yoon added that in the short-term, 158 trillion won will be invested over the next five years, creating 950,000 jobs.
“There is one thing that requires the full commitment of a nation’s human and material resources: war,” Yoon said. In this context, he emphasized that modern warfare means waging a “speed war” in the semiconductor sector. “The semiconductor sector must utilize every human and material resource the country possesses to stay ahead of the race.”
