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South Korea Targets Chipmakers, Other Industries With Tax Breaks

July 26, 2021, 2:39 PM

South Korea on Monday unveiled a bill awarding tax incentives to key strategic industries—including semiconductors, rechargeable batteries, and vaccines—to encourage R&D and investment in response to the post-Covid-19 era.

Companies in those industries, depending on their size, would receive R&D tax incentives of up to 50%, which is 10% higher than the current rule, and tax credits of up to 16% for facility investment, for three years, starting July 1, 2021. “It can be a golden opportunity to expand the supply chain leadership and external influence if we preempt and secure core technology and supply capacity,” said finance minister Hong ...

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