President Yoon Suk Yeol Vision: Advancing South Korea’s Semiconductor Dominance
President Yoon Suk Yeol of South Korea has unveiled plans to extend tax credits for investments in the domestic semiconductor industry, emphasizing a strategic push to spur employment and attract top talent. The initiative specifically targets high-tech sectors, including chips, displays, and batteries, with the aim of enhancing overall competitiveness. Notably, South Korea hosts global leaders in memory chip manufacturing, such as Samsung Electronics and SK Hynix, prompting a comprehensive effort to augment tax incentives and support frameworks for these critical industries.
In a meeting with industry stakeholders and students, President Yoon highlighted South Korea’s global prominence, citing the influential K-pop group BTS and the pivotal role of the semiconductor industry. Concurrently, efforts are underway to establish a colossal chip cluster in Yongin, positioned south of Seoul, touted as the world’s largest high-tech chipmaking complex. This strategic move seeks to attract both chip equipment manufacturers and fabless companies, solidifying South Korea’s stature in the global tech arena.
Envisaging an initial investment of approximately 622 trillion won ($470.82 billion) in the cluster, President Yoon anticipates the creation of at least 3 million jobs over a 20-year period. Underscoring the government’s resolute commitment, he emphasized mobilizing all available resources to triumph in what he termed a “war” for preeminence in the semiconductor industry.
The government’s proactive stance was evident in its January 2023 plan, offering substantial tax breaks to semiconductor companies investing domestically. While the initial tax deductions were slated to conclude this year, President Yoon affirmed the intention to prolong the impact of the law, ensuring the sustained availability of investment tax deductions.
Addressing concerns about potential biases toward large conglomerates, President Yoon argued that heightened investments in the semiconductor sector would not only catalyze job creation but also contribute significantly to increased state tax revenue over the long term. A key player in South Korea’s technological landscape, Samsung Electronics, has outlined ambitious investment plans of $230 billion until 2042, reinforcing the nation’s foothold in chip manufacturing.
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