S. Korea to consider providing tax cut for memory chip R&D
Updated: 2021-04-16 14:45:09 KST
The South Korean government is considering providing tax deductions for businesses developing memory semiconductors.
Finance Minister Hong Nam-ki revealed the move on Friday during a meeting with corporate leaders on spurring innovative growth, saying that this is to encourage investment into semiconductor research and development.
He also said the government will focus on fostering the so-called 'big three' industries of system chips, bio-health and future cars.
"As can be seen from the White House's summit with corporate leaders addressing the global shortage of semiconductors and LG and SK's settlement in their battery dispute, batteries and semiconductors are the key infrastructure for the fourth industrial revolution. Countries are going all out to take the lead in the market and to secure supplies."
He said that the country will continue to increase investment until 2025 with the aim of being the world leader in the emerging market.
South Korea will also invest 37 percent more than it did last year on the development of future cars.
He said the government will invest nearly three-hundred-30 million U.S. dollars this year on R&D for eco-friendly future vehicles.
The focus will be on batteries, hydrogen fuel cells and self-driving networks.
The government is also considering extending support for regions with industries that are at risk including Ulsan, Geoje, and Mokpo.
Eum Ji-young, Arirang News.