SEOUL, Jan 3 (Reuters) – South Korea mentioned on Tuesday it plans to supply massive tax breaks to semiconductor and different expertise firms investing at house to strengthen its supply-chain safety whereas boosting the financial system.
Corporations making capital funding at house could be given as much as a 35% tax deduction which might assist firms save greater than 3.6 trillion received ($2.82 billion) in 2024 tax funds, the finance ministry mentioned in a press release.
This transfer comes after different international locations, corresponding to Taiwan, house to the world’s largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW), and america introduced plans to convey chip manufacturing on shore and bolster the home business.
The South Korean finance ministry added that the tax break plans had been topic to approval by the parliament, which is dominated by the opposition.
($1 = 1,276.1200 received)
Reporting by Choonsik Yoo; enhancing by Christian Schmollinger and Raju Gopalakrishnan
Our Requirements: The Thomson Reuters Belief Rules.