SEOUL, Jan 3 (Reuters) – South Korea said on Tuesday it plans to offer major tax breaks to semiconductor and other technology companies that invest at home to strengthen supply chain security while boosting the economy.
Companies making capital investments at home will be given a 35% tax rebate, which would help the companies save more than 3.6 trillion won ($2.82 billion) in tax payments in 2024, the ministry said. of finance in a statement.
The move comes as other countries, such as Taiwan, home to the world’s largest contract chip maker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) ( 2330.TW ), and the United States announced plans to bring chip manufacturing ashore and to strengthen local industry.
South Korea’s finance ministry added that the tax cut plans were subject to approval by the opposition-dominated parliament. ($1 = 1276.1200 earnings)
Reporting by Choonsik Yoo; editing by Christian Schmollinger and Raju Gopalakrishnan
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